The most recent conversion formula provides the lowest pps multiple of any formula previously used. I used for my calculations ".0008" price per share converted. That is the absolute lowest pps which could have been used in the draw down as to GGI. But the market data for any five day average since the escrow agreement was first tapped, leads to a multiple higher than ".0008"
The higher the multiple, the less amount of shares used to draw down the GGI debt.
The original formula didn't call for the average of the five closing bids to then be multiplyed by 80% thereby lowering that average by 20 %. Without reducing that average, as per the old formula, leads to a HIGHER pps for the conversion.
A higher PPS in the conversion makes the amount of the debt redeemed go UP which would leave more shares remaining for the second beneficiary, AERO.
So, the only possibility of the old formula effecting my math is that AERO would have received even more shares from the ESCROW, not less.
Once again, since AERO's shares came from the 564,000,000 O/S the percent AERO owns vs what FCCN shareholders own, as to the market cap value per share, is irrelevant.
Furthermore, here is the formula used in the 10K filed on June 7, 2007:
"The debenture obligation is reduced by 80% of the average of the five lowest closing bid prices of the Company’s common stock over a 90-day period prior to the share withdrawal multiplied by the number of shares being withdrawn. Under the terms of this settlement, as of May 23, 2007, 227,267,345 shares have subsequently been released from escrow and the debenture balance has been reduced to $92,854.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.