Corey Ribotsky's N.I.R. Group AJW Funds Downward Spiral Convertible Notes

[john wayne]

Let's take this one for example:

· On August 31, 2005, the Company sold $1,300,000 of notes and issued five-year warrants to purchase 203,124 shares of its common stock at an exercise price of $4.50 per share (the "First Installment"). The Company received net cash proceeds of $1,165,334 after the payment of transaction costs of $100,000 and prepaid interest of $34,666. The transaction costs were capitalized and are being expensed over the three year term of the notes. The prepaid interest represented four months of interest on the notes and was amortized to interest expense accordingly

Is there any calculation I can make as a prospective buyer of common stock, as to when this will stop effecting the share price? Do I just guess and say 'Well it's been over two years now, this should not be an issue?" I can't really calculate it out using average volume, because I don't know when they were selling their shares.

Or are their key dates, like date of the transaction, that may help decide this?

Also what is execrise price?