RonnieD...conversion assumption, friendly hands.....
"I think you're making a mistake to assume full issuance to the A/S limit of 100 million is automatic. Furthermore 9.98% of 100 million is 9.98m."
Based on the fact that the parties involved have made it clear that the conversion price remains set at .001, I think it is logical/prudent to assume that the entire note will eventually be converted into shares. So my assumption is that ultimately 11.7M shares will be issued to the note holders.
I have made no assumptions regarding what GNZR's outstanding share count will eventually look like. Again, the only assumption I have made is that the note will eventually get converted into 11.7M shares, which is why I figure that number into the fully-diluted amount.
Again, I think people need to just completely ignore the percentage ownership limit feature. I have a feeling that this feature is causing considerable confusion and is kind of playing mind games with people. I think people are forgetting that nothing in the feature requires the note holders to keep each and every share they convert. If the note holders bump up against the ownership limit number on a conversion, they can simply sell some shares so they can make another conversion.
This feature has no effect on the total number of shares that can (and will be) issued if the note holders elect to convert the entire note into shares. That number has already been set at 11.7M shares and that number will not change unless there is some modification of the note terms. GNZR's authorized share count of 100M also has nothing to do with the amount of shares that can (and will be) issued if the note holders elect to convert the entire note (again, 11.7M shares).
The only thing this feature does is just extend the conversion over a length of time, depending on what GNZR's outstanding share count looks like at the time of each conversion. For example, let's say that GNZR makes an acquisition and there are now a total of 10M shares of GNZR outstanding. The note holders at that point could convert up to about 1M shares and then sell those 1M shares. The next time they convert they could get about 1.1M shares, because GNZR now has 11M shares outstanding. They can then sell those 1.1M shares and the next time they convert they could get about 1.2M shares because GNZR now has 12M shares outstanding.
"so i believe the note is in friendly hands, friendly to Jacobs at least who is still holding into next year by agreement."
It is entirely possible that the note has been placed in friendly hands. What is unknown to the retail shareholders at this point in time is whether this note benefits the shareholders/GNZR in any reasonably attractive fashion.
For example, if the note holders happen to own some assets/businesses (or have the ability to attract acquisition targets) that can be injected into the GNZR shell on extremely attractive terms to GNZR and its shareholders, then that would place this particular note/debt into a different light. However, if the retail shareholders ultimately receive no significant benefit from this note under its present terms, then it has the potential to become an extremely unattractive situation.
