yes, and will most likely suffer 90%+ losses in the end. the writing is on the wall, and that wall is the financials. anybody with any experience at all in otc only had to take one look at those financials and run the other way instead of chasing. smart traders sold at those prices. not so smart traders and dreamers bought into the pump by those who were selling as they were pumping. that is life in the otc. there is insurmountable debt on the books. the other thing that most inexperienced traders don't understand about convertible debt is that in 95% of cases the terms don't allow it be paid off in cash. and they don't understand the discount aspect of the terms which almost always say that the notes are convertible at 40-60% discount to the LOWEST trading price in a preceding period (normally 20 days). so, when you chase a stock up hundreds of percent, the noteholders still get to convert their shares at a 40-60% discount to the recent bottom trading price. and that is what makes the dilution endless. so, if you are buying a stock at .07, and recently the low was .01 or even less, the noteholders are getting whatever they are owed paid in shares at a price of half of that recent low. most people think that the conversions would happen at .07. no. doesn't work like that. so, $20 mil in conversions could be another 500 mil or more in shares coming into the float over time. lclp will probably be .01 in a couple of weeks.
AI
