Phoenix Associates Land Syndicate (fka PBLSQ)

[LowFloatGoat]

Question on the Offshore bank, increase in OS and financing--

Is the following scenario possible given the loose regulatory standards offshore?

PBLS buys an offshore bank. PBLS increases the OS and uses 100 million shares of PBLS common as collateral on a loan from the offshore bank.

The offshore bank requires 20%(?) in collateral then makes a loan for 5 times the amount of collateral.

For example, at $0.015 per share 100 million shares are worth $1.5 million. That would produce a loan $7.5 million assuming 20% collateral, a $3 million loan at 50% collateral etc.

So for every 100 million shares the company pledges as collateral, they can take out a loan worth several million dollars.

If they use the buyback/converted shares as collateral then they don't have to issue new shares or use shares reserved for partneres.