Pervasip Corp (PVSP)

[Bjones2]

Not all Dilution is the same

There are many forms of stock issuance often referred to as dilution, but they are not all created equal. Issuing shares to retire debt, particularly when it is being done at 10c on the dollar can be a net positive for shareholders.

This company had over $14 million in debt when it agreed to issue CDs that would wipe out the debt for $1.4m, a tremendous deal and opportunity to wipe the debt and the remove the lean holders from gaining control of the companies assets. Think for a minute what your shares were worth when there were 60m shares outstanding and $14 in debt. The answer is less than zero, nothing, nada.

Ya so now there are 600m shares outstanding but there is also only a few million left in debt and that will be gone soon also, so shareholders are get value out of this deal, and they also have the opportunity to maintain their % of company ownership by having access to buying the converted shares in the market.

Same deal going forward the company can always reverse split the shares and we would be back to 60 million shares in 3 seconds and the price would be .03 instead of .0003, and none of this would mean anything.

The only thing that matters is growing revenue and producing profits which will now be possible with the $14 million in debt being gone from the books and a clean balance sheet on which to grow the company.