FrankSpeech Network Inc (FSBN)

[fibinacci]

Hey Mar-Key. That's a good question. Right now, they are still profiting at 0.0005 b/c the average price is somewhere between 0.0005 and 0.0006. But GGI won't push the price down to 0.0004 b/c even at an average price of 0.0005, the 20 percentage points is greater than the 18% discount, meaning their cost per share is more than what they would sell the shares for. Do you enjoy selling shares at a loss? Neither does GGI. It is my belief that this phenomenon is what has provided support at 0.0005.

Is it fair to say most of the downward pressure is from GGI? If you agree with that and agree that GGI would lose money selling at 0.0004, then what would be the driving force for a lower pps?

The one thing I could see happen is for complete manipulation by GGI. They would have to sell shares for a loss to get the average price down and try to make up the loss the next day.. seems risky. And it just gets more and more difficult to do this as the price declines below 0.0005. It is in their best interest to keep the price up.

But going back to your question.. what would happen if GGI stopped profitting? GGI would stop converting and GZ runs out of cashflow and has to figure out some other means of financing. But I think there is enough volume and accumulation in the 0.0005 to 0.0006 range to get through the next few months without problems. I don't know that GZ can force a conversion. If push came to shove, they may have to lift the 9.9% limit on GGI to keep the cashflow going. Who knows, they may even get desparate and create a new debenture with a bigger discount.. say 30% or 40%. But to date, that hasn't happened so my arguments are based on the current agreement.