Digital Brand Media and Marketing Group Inc (DBMM)

[Sola Fide]

Some share ciphering....
Having again gone back and re-read the filing regarding the cd notes.
It said they had commenced, ie...the conversion (valuation) of several months of cd's had started. However, the restriction was / is not off for 9mo, ie....they could not begin selling the first months of cd's.

the conversion feature of the April and May 2011 notes had commenced. The conversion rates were based on variable undeterminable conversion prices

"Commenced" meaning initiated or requested.

The note about the $87K balance remaining unconverted, I believe means not yet given a conversion rate.

As of the filing date of this report the remaining unconverted balance amounted to approximately $87,000

March conversion valuation Sept. sellable Dec.
April conversion valuation Oct. sellable Jan.
May conversion valuation Nov. sellable Feb.
July conversion valuation Jan. sellable Apr.

As of November 30, 2011 $38,000 of these 8% Convertible Notes have been converted into 16,804,794 shares of common stock with a $165,000 principal balance remaining.

I'm assuming that is the March note?

The conversion rate for the $38k was .00226,
**Note the trading range in Oct. for an idea of the discount given for the $38k.

With the conversion valuation following the descent of the share price...it would be my guess that a portion of that $165k balance will have a conversion rate of .001 - .0015, and the last note of it down in the .0005 area?

affects the accounting for convertible instruments and warrants with provisions that protect holders from declines in the stock price

Accordingly, note holders discount is protected and adjusted? as it merits.

Accordingly the $165k probably equates to 140+/- million shares.

OS posted in the filing only reflects the first $38k converted but not the "commenced" April & May notes, because they had not been issued, a conversion valuation given but not converted.

My guess is that when the monthly 8% notes are done, the OS will be 350 - 400 million. Still a reasonable # compared to many, but not the low OS play that it was.

Mind you, this is Only the 8% note, there is still a 0% cd for $81,653.
Will that note go into conversion after the current one?