@ HotDog>
The way this capital structure is set up, the primary creditor, YAGI, has a right to periodic interest payments on their debt contracts. If the company is short on cash, when an interest payment is due, then YAGI can DEMAND that GreenShift issue them enough shares to cover the interest payment.
Neither KK, nor GreenShift, has any control over these demands for shares by YAGI, because YAGI is the primary creditor. They MUST issue shares to YAGI, and then YAGI sells the shares on the open market.
The large share volume lately is probably just a periodic interest payment being made to YAGI by issuing shares to them, which are then sold on the market.
It is also stipulated in the debt contracts that YAGI cannot hold more than 5% of the equity at any time. So, YAGI cannot accumulate shares beyond that limit. They must sell.
So, you see, the debt contracts force new shares onto the market. The reason that so many shares are coming on the market is that the share price is so low, right now. If the share price were higher, then YAGI's interest payments would require fewer shares to be met.
For example, if (hypothetically) YAGI's interest payment is $500,000; then it will require 5 Billion new shares to meet the payment, if the stock price is $0.0001. On the other hand, if the share price is $0.001, then it will only require 500 Million new shares to meet the payment.
The good news is that there are enough Corn Oil Extraction Systems coming online very soon that the company should be able to begin meeting its debt payments with the cash flows from those systems, instead of using new shares.
The Green Plains Renewable Energy contract, which covers 700+ Million GPY of ethanol production, is scheduled to be completed by the end of this quarter. Once those cash flows start coming in, these massive dilutions should cease.
