Bioelectronics Corp (BIEL)

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People keep bringing up 50% discount at conversion

When I read the financials this is what BIEL states about convertible loans;

"The conversion prices on the convertible notes payable have generally been 50% or less of the pink sheet closing price of the common stock on the date the notes or advances are issued to reflect the restricted nature of the stock into which the notes could be converted and the Board of Directors’ belief that the closing stock price is not reflective of the fair market value of the common stock due to the price volatility, and lack of an active market for trading shares resulting in limited trading volume of share transactions. The Board of Directors is active in negotiating conversion prices for each issuance and takes into consideration all information in establishing the issuance date fair market value."

So, 50% or less at the Issuance Date SP not the Conversion Date, with BIEL willing to negotiate if the Conversion Date SP is significantly lower than the Issuance Date SP.

From the BIEL Q3 2022 Disclosure Statement, this policy demonstrated;

"During the second quarter of 2018, the Company entered into a convertible note agreement with Abhinav Humar, receiving financing of $160,000, with an interest rate of 8% per annum and convertible at a rate of $.0013 per share. The balance on this loan was $224,450 as of September 30, 2022."

This loan was Issued on 5/18/2018. BIEL's SP ranged from a high of .0031 to a low of .0021 during this week.