Alto Ingredients Inc (ALTO)

[EYEBUYSTOX]

I don't believe there's dilution. From what I read in the financing agreement, the debt holders can accept shares in lieu of cash. If they took $1.2 million out of the $2.2 million due in the form of shares this last month at .28/share that would add approximately 4.2 million shares to outstanding shares, which is almost exactly what the increase in outstanding shares was. And I don't believe they're going to be selling those shares any time soon. Then, they use the million in cash to sell short for next month, get another 5 million shares they can use to cover their shorts with and receive another million in cash...wash, rinse, repeat. So, until this debt is paid off there's limited upside. But don't be fooled. When the debt is paid off, they will pump this thing hard and I'm gonna go along for the ride.