Bioelectronics Corp (BIEL)

[kidnova]

In regards to the convertible notes. Andy and his family, through various other companies, have loaned money to BIEL. The balance of those loans, plus any accrued interest can either be:

A) Paid off in cash, in which case no shares are issued and the OS remains the same.

B) Converted to shares at a given price per share. Some of those notes have specific conversion prices, and others are a certain percent of current market price. The IBEX debt, for example, has typically been converted at 20% of market price or less. Once this occurs they are typically sold directly into the market, although that is not always the case. In reality, even the ones that were issued with a specific conversion price don't really have one as they notes usually contain anti-dilution provisions and prices on convertible debt are usually renegoatiated as the pps declines.

As for how the Whelan family has made millions, that's pretty simple. During 2009, there were roughly 1 billion shares issued in exchange for debt, a majority of that being held by the Whelan family. IBEX received 430+ million shares at a price of $.0012 per share when the pps was trading between $.02 and $.08. Even if she only sold a quarter of those shares she would have made anywhere from $2-$8 million.