I am bullish going forward.
However, I believe that there is potential for the OTC application to be denied if potential dilution would cause us to go over $1b shares. At the time of filing, it was roughly 950,000,000 float fully diluted give or take.
However, we know that a price drop would cause this to be higher. At a glance, the potentially 'increasing' dilution I see is the following
3-26 $83,000 (61% of lowest price over prior 2 weeks)
4-5 $43,000 (61% of lowest price 61% of lowest price over prior 2 weeks)
5-3 $128,000 (61% of lowest price 61% of lowest price over prior 2 weeks)
We dropped to right at a penny the other day so if they wanted to cash these in right now ( The May one they'd have to wait 4 weeks or so) instead of the roughly 24,000,000 shares that would be issued at fair value to cover this, because of the discount, we'd need to issue roughly 40million shares. This is not an extreme increase... but every drop in share price makes this effect worse and draws us closer to being over 1,000,000,000, which would surely disqualify us for an uplisting.
I think the recent purchase is great, but we either spent cash (that we don't have a ton of) or shares (that we don't have a ton of) to get it... which means we're edging ever closer to that 1b fully diluted mark. If we can hold above a penny we're good, but I believe a close below a penny starts the process all over again anyway and we'd need to wait another 30 days to apply again if we're able to recover.
Ultimately, an uplist isn't what's going to make or break us here... but I do see some urgency in stopping the price drop since we have these potentially very dilutive events coming up with these conversions... we had good volume the other day, but I see difficulty holding at a penny if they dump all 40 million shares over the next few weeks.
Anyway, good things on the horizon but I hope it happens fast so that we're still in a solid place financially when we get there and avoid the spiral that we saw two years ago around this time.
Again, I am positive about this company.. Holding mine and hoping to buy more soon, just hate these discounted stock things and it's hard to feel great with those sitting out there.
Thanks for any comments!
