East Coast Diversified Corp (fka ECDC)

[flaflyersfan]

smalltimetrader, the Common A shares sold to Ironridge at a 35% discount to market are not restricted at all and are free-trading upon issue. Ironridge will sell the shares immediately into the market at a profit in order to get more shares as they cannot exceed 9.9% of total O/S. They received 49,700,000 in the first tranche and have not even started handing out the $1,000,000 yet. At current PPS it would take around 500,000,000 shares to convert. Obviously all the stock about to be issued will lower the price requiring even more shares to be issued as share price dwindles.

This is how toxic Convertible Debentures work and have worked for the last 13+ years I have followed penny stocks. ECDC did not tell investors about that but instead chose to highlight the Series B shares yet to be issued which would be restricted.

Please do not take my word for it. Ask around for proof that I am correct;

http://www.sec.gov/Archives/edgar/data/1256540/000114420412023034/v310158_13g.htm

There are other penny stocks that have used Ironridge before.

Good luck.