GNCC Capital Inc (GNCP)

[WrenchHead]

I wanted to write this yesterday but when I tried to put it into words it didn't make sense. After sleeping on it this is what I think is happening with the old debt. I also think Ted had an idea this was going to happen which is why he negotiated the .0003 pps for the CD holders.

It is in the very best interest of each CD holder for the average December pps to be as low as humanly possible. The lower it is the less money from the old debt is paid off. That has been stated a couple times and I think we all get that. Roughly 690K will get paid off of the 10MIL+ old debt. Now think about that for a minute. If less than 10% of the debt is paid off the CD holders have a few options in the future.

A. They can be paid off in cash. (Not going to happen until there is some revenue or some sort of GREAT news to drive the pps up.) This pays the debt off but has the least potential to make more money for the CD holders.

B. They are issued billions of more shares in the future to cover the rest of the debt. And unless the pps is up we will be in the same boat. Although I have a feeling they would be paid off before this point. I highly doubt Ted wants to be put in this situation again. But if the company is doing really well they would probably want it to go this route. Bigger risk but potentially a much better deal if the pps goes up. They also have to have some kind of inside information on the mines and their worth. People just don't loan money for nothing.

C. I am sure there are other options I am not thinking of.

Now I think Ted negotiated the .0003 price because if it was any higher it would be that much easier to short it. It would also be easier for the CD holders to sell their stock at say .0006 (if that was the agreed upon price) and buy it back lower essentially doubling or tripling their total shares.

The CD holders are not dumb. They know if they flood the stock with all of their shares they essentially dilute the stock driving the pps down. At the same time the greedy CD holders can short the stock potentially making even more money.

Ted isn't dumb either. A lot of the shareholders think we have been played but this is just the first move in a series of moves to eliminate this debt. I will agree there is a big risk here. Ted is essentially putting this debt in the shareholders hands, literally and figuratively. If we drive the pps up enough the debt is wiped out. If somehow the pps can go up to an average of .0032 the 10MIL would be wiped clean. Personally I don't see that happening nor do I see any news worthy enough coming out anytime soon to drive the pps up that high. What I do see is an attempt for Ted to at the very least get rid of $690K of debt possibly getting the CD holders off his back for at least a year. In which time Ted can get the company back on track and eliminate all the debt and start generating profit. At best I see some news coming out that pushes the pps up to an average of .001-.002 eliminating 1/3 to 1/2 the debt.

I think I got everything I wanted to say in there. Hang in there and wait for the new year.