The Ceo said most, not all. I'm not sure if the original docs in the first Reg. A filiing disclosure still holds any weight on the conversion rate.
But lets suppose that's true. You're not including the tranches for future share prices into the equation.
I'm going to base this off the original conversion agreement and the recent increase of the o/s from the last Q to the current Q.
So one can assume around 10 million shares has been converted by Leonite recently. At a discounted rate of .0123, that would knock off $123,000 of their $420,000 convertable debt, leaving them with $297,000 in debt with Leonite.
However, if the next tranch gives us a 21 day low of .10, Leonite would get their discounted shares at .05. That would be a total of 5,940,000 shares left which would fully pay off the remaining debt of $297,000. Thats not a lot, and no where near the 40 million+ you're assuming.
Or if the 21 day low is .12, the total convertable debt would be 4,950,000. ($297,000 ÷ .06 = 4,950,000 shares.)
I highly doubt that this would get to a couple of pennies. But lets assume it does in the next tranch where the conversion rate is at .0123. With $297,000 left in convertable debt, the total amount in shares issued would be 24.1 million shares added to the o/s. ($297,000 ÷ .0123 = 24.1 million shares)
Again, not 40+ million shares as you said it can be. You simply havent factored in the next tranch conversion rate which will be much higher than .0123, unless you think this falls back to a couple pennies. Might I add, nor have you added the recent and suspected conversion to the equation.
Either way, whether if it's 5 million or 24 million, given the fundamentals that we have, this stock will still be justified in the dollars.
