Well I finally think I understand after a week of research and thinking about everything posted, PR'd and filed.
This is just a broken down theory in it's simplest form;
Hank and Trader please jump in here if you'd like...
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So I lend you $15 million dollars.
You give me 23,576,986 shares of common stock.
You need to pay off your debt in X years.
You also need to pay me, in cash twice a year interest on the loan of approx. $1 million (really it's 8.5% per year on outstanding principal) cash.
Now it would seem that I want your company to be profitable, which I do so you keep paying me my interest payments.
But also, you'd think I would want your stock to increase in value but really I don't. I know it may be hard for you to pay me in cash so I'll let you pay me in stock at a some point. And when that time comes I want the price of the stock to be low so that you have to give me more shares to pay the debt.
But, you do manage to make your cash payments and things are looking good. But I still want the stock to stay low until the debt matures.
In the mean time, I can sell my shares on the OTC and make some money. It's not my fault that I own so many and that there are only 295 shareholders and when I sell big blocks the price goes down. It was moving up on earnings.
Hmmmm, I'll buy them back when the price settles after my sells.
Wow I can do this at least 4 times a year and make money each time, keep the share price low so if need to be paid in shares I get more and also increase my position by selling high, buying low. Genius!!
There is more to this childs theory but it has some sketchy underlinings that are beyond my realm. (145157)
End of story I think though is (a) when the debt matures (b) word somehow gets out about Coda Octopus Group and their products (c) Military embraces the 'oven' (d) a large fish eats this octupus.
All in all still favorable anyway you look at it, it's just WHEN will it happen. I for one will keep buying.
