THPHF - Thinkpath, Inc. (THPHF)

[LMRI T/A]

Roadhome

This is what I posted on RB. Read very carefully and compare it to THTHF.

"What happened is the creditor sells first (short) before they own any shares, after they saw the price dropped below a reasonable level, for example $0.05 (usual case), they would negotiate (or have already negotiated) with the company about converting the debt to common stock at the low price. By the way, this is when bashers usually step in. At this moment, the float is increased in the amount of short shares they sold, not in the amount of shares actually converted (/I<.

In contrary to the common sense, the creditor DOESN'T need to buy back their shorts, the reason is they shorted with their own future shares. After they converted its loan to common shares at very low prices, they would OWN millions of shares, this is short covering plus own millions of LONG shares. They don't need to sell these LONG shares either at the moment because they know the stock would go up from this depressing level.

As a net result, the creditor would own a big chunk of the company after finish converting, they would ride the stock up with mutiple hundreds percentage gains. This is why this stock would benefit from the MMs (also credtors)after the debt converting is done."


EOM