WW...Huge dilution of 10% maximum will occur ...
< filed a registration statement to register up to 50 million shares of common stock issuable upon conversion of the above convertible debenture. >
Only and if the company does not repay the funds borrowed, which they can do at 120%.
We have 91 days from Feb 2 before any shares can be distributed against the first $500k lent and only 25k can be converted at a minimum floor of .075 cents and then the dilution would be 3,333,333 shares according to the formula in the documentation. If higher in SP then less dilution.
Someone here not long ago posted a marvelous background piece on the stages of growth and funding vehicles start-up pink stocks go through as a step process for moving upward on exchange listing. WSGI appears to be right on track with that analysis. If someone can find it, I recall it being a good read.
I don't believe it is the intention of this management for this funding to ever reach maturity, if all goals and plans are met for 2012. I think this is a necessary 'bridge' to more fundamental institutional fundings, implied in the shareholder letter.
Until BRIO is gone, as they are not restricted in the amount they can dump daily as Hudson was, all advances will be stimied for a bit longer. After all when you own it at .03 or less, .07 looks wonderful. The good news is with increasing good news or revenue announcements, the volume will munch through their already depleted 6 mm pile sooner than later.
Why do I think this? The last rise in Jan. on the N2S2 announcement was unfettered by resistance because Hudson was with little and Brio didn't have their shares yet.
m
Before dawn there is darkness. Then the sun rises on a new day.
