I suspect the company may start heavy dilution soon if they are unable to deliver anything with substance. If this goes to .0001 you will not be getting "a deal" as they will increase the AS in order to sell as many shares near the end of this year or they are done. The below information tells us that the plaintiffs had to accept the preferred shares or get nothing from the looks of it. There were unpaid wages and unpaid leases. Now combine that with their existing tax liabilities what does ICOA bring to the table for a profitable company to want to JV or RM with them for? Nothing. So either ICOA needs to deliver something of substantive value before mid year or they will start dumping the stock for as much as they can get at .0001. Since pink stock sale limits are 1M a year you need to factor in how much discounted stock the company will sell to get what they need. It may get to 20B+ as discounted stock sales can be .00005 a share or less for 504 buyers who can sell for .0001 to us for an instant profit. When you see the first signs of large amount of shares at .0002 or .0001 think twice about buying more of this.
One will regret it.
ICOA, Inc. (PINKSHEETS: ICOA) today announced that it has completed the conversion of $2,070,000 of debt to equity as follows:
11/09/2010
* A judgment against the company of $1.0 million for unpaid lease costs plus accrued interest of about $100K was settled for $750,000 of Pfd B (300,000 shares) at a price of $2.50 per share.
* Accrued payroll in the amount of $970,000 was converted to equity through the issuance of 388,000 shares of Preferred B at a price of $2.50 per share.
* The Preferred B Series shares have a mandatory lock-up of one year while the company is a non-reporting entity and six months when it becomes reporting with the SEC. In addition, all conversions are then subject to the rules of Rule 144 as they might apply to the holders.
As previously announced, the Company plans to substantially reduce its debt load through conversion of debt into equity. This will help strengthen the Company's Balance Sheet in anticipation of its previously announced plans regarding the acquisition of private Wi-Fi providers by the end of the year which we are currently negotiating.
