Mike Lindell Media Corp (MLMC)

[CheezyTang]

PowerPole, and others...

As listed in the 10QSB; don't the convertable debentures worry any of you? See below:

(g) Adjustable Conversion Price Feature of Debentures Could Require the Issuance of Greater Number of Shares.

The Company's obligation to issue shares upon conversion of the convertible debentures to Golden Gate Investors, Inc. (see Liquidity and Capital Resources, below) is essentially limitless. The following is an example of the amount of shares of GameZnFlix common stock that are issuable upon conversion of the convertible debentures (excluding accrued interest), based on market prices 25%, 50% and 75% below the market price as of November 10, 2005 of approximately $0.01:


Number % of
% Below Price Per With Discount of Shares Outstanding
Market Share at 18% Issuable Stock

25% $0.0075 $0.0060 2,735,000,000 73.90%

50% $0.0050 $0.0040 4,110,000,000 80.97%

75% $0.0025 $0.0020 8,235,000,000 89.50%




As illustrated, the number of shares of common stock issuable upon conversion of the convertible debentures will increase if the market price of the stock declines, which will cause dilution to the existing stockholders.

(h) Adjustable Conversion Price Feature of Debentures May Encourage Short Sales.

The convertible debentures issued to Golden Gate Investors, Inc. are convertible into shares of Company common stock at an 18% discount to the trading price of the common stock prior to the conversion. The significant downward pressure on the price of the common stock as the selling stockholder converts and sells material amounts of common stock could encourage short sales by investors. This could place further downward pressure on the price of the common stock. The selling stockholder could sell common stock into the market in anticipation of covering the short sale by converting their securities, which could cause the further downward pressure on the stock price. In addition, not only the sale of shares issued upon conversion or exercise of debentures, warrants and options, but also the mere perception that these sales could occur, may adversely affect the market price of the common stock.

As shareholders, we should all review this section carefully and discuss it's impact on the stock.