Clearwave Telecommunications Inc. (CWTC)

[MasterBidder]

From the last Q:

As of December 31, 2012, the Company had issued convertible debentures in the amount of $1,206,763 convertible at a conversion price of the lesser of (i) 70% of the price per share of common stock or common stock equivalent paid by investors in the Company’s next round of equity or debt financing consisting of at least $1,000,000 in cumulative gross proceeds, or (ii) $0.12, warrants outstanding of 4,802,642 consisting of 2,401,321 with an exercise price of $0.14 and 2,401,321 with an exercise price of $0.18.


For the six months ended December 31, 2012, the conversion of all of the above would result in a possible dilution of 23,627,028 shares. However, as the convertible debentures, options, and warrants have a strike price equal to or in excess of the market price, $0.0024 at December 31, 2012, and are considered not “in the money”, they are excluded from the calculation of diluted earnings per share due to their anti-dilutive effect.