The face amount of the convertible notes was over $200,000 as of 11/30, and with discounts etc that would amount at current prices over 20 million shares to settle. You indicate that they have 73 million shares outstanding now, which presumably includes some shares issued through conversion the last two months.However as others have mentioned they issue shares for services etc. Roughly I foeecast they would end up at 150 to 200 milllion shares outstading using some fairly positive assumptions.
As far as company being able to issue free trading shares to settle convertible notes I am unawae of any filing they have made that would permit that.
To forecast shares I used following assumptions (a) Company would need at least $40,000 in cash per quarter to survive as indicated in their last 10q (b) they would need to issue shares for propertie deals to re-negotiate, they would issue all the s8 shares for services, and continue wherever possible to issue restricted stock for payables.(c) they would go back and get at least 1 possibly 2 convertibles to fund cash needs.
I admit I do not believe their cash needs are decreasing as they move forward to meet permit conditions and gear up for production.
As far as unknown line of credit being used to fund expenses, I doubt as a reporting company they would be drawing on this and not reporting somehow.
Very good point though that trading on Friday good chance tied somehow to the convertibles. That makes perfect sense
