If the CFO bought 20,000 shares at 22 cents share that would mean the investment was $4,400 dollars. The question is did the CFO use his money of did the company lend him money to make the buy because the best bid was 18 cents a share and George is worried that if the stock goes under 20 cents a share the recent loan he got for $78,500 in the form of a promissary note would dilute alot of investors, including him. The loan/note is at a 40% discount to market.
The deal really dilutes shareholders and is basically at 12 cents a share. It's going to be another 700,000 more shares into the market. Iam sure their are some covenants in the deal/loan that ensures and insures the investor from losing money. If those covenants are broken the issuance of shares will far exceed the 700,000 shares.
