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Re: None

Tuesday, 08/06/2013 3:32:59 PM

Tuesday, August 06, 2013 3:32:59 PM

Post# of 183586
Understand the CD Holder has to convert

IMO the CD Holder really doesn't have the option of just holding shares until they go higher before selling. For one thing the agreements sets strict limits on amount that can be held and by the very nature of the animal, these financial instrument often require that the shares be quickly rolled over to cash in order to continue to finance the agreement.

It is not like most of these funding entities have tons of cash that they hand out to struggling micro caps and see what happens. There business model depends on limiting their exposure and recycling those dollars over and over again, by converting stock to cash as they go along, providing more available funding etc.

Of course everyone of these things are capitalized differently so you can't really generalize why they act as they do, it is their ball game so let them play it out.