Absolutely B9. New financing, lower float.
I will say this though. I believe that's one reason IMSC must give 90 days notice (again, not 100% sure of the number there) that they're going to pay off DMRJ, in this case, with new financing. I still say DMRJ converts tens of millions of shares within that 90 days. The trick here is that the NEW financing must not dilute, or minimally so.
I honestly think DMRJ's best play is to end the terms with IMSC with, say, 10 - 20 million shares (plus the percentage of principal back that they didn't convert), and then watch those shares appreciate in value. A lower float helps that appreciation.
20M shares of (hypothetically) a $5 stock? Plus a high percentage of principal back, plus what they've already converted... Pretty good return for them, and that would leave the float around 80M.
Or, looking at the float at 130M, that means DMRJ holds 70M additional. No original capital back (all converted). Suppose the stock is around $1 in this scenario... That's $70M in holdings for DMRJ as opposed to $100M (plus capital %) in the other scenario.
These formulas would be absolute though, and admittedly, I'm not doing that here. But DMRJ is, surely. I'm just illustrating the point that there's a magic number out there for DMRJ, and I don't believe 130M is it. Somewhere in the middle, IMO, and the DD at this point is trying to figure out what that number may be.
All IMO, and, of course, I do have a day job, so I'm by no means an expert. ;)
