Well Andy, the way I read that document it jives with previous disclosure, including last 10-Q that they were going to "swap out" debt owed to them for share. But HOLY COW, they just gave the CEO 6 MILLION shares on 9/30/2013 at .014 each. And now they just ran it up to .08 a few months later? Lets say he could sell a big chunk of those into this strength and make .04 or .05 say a share, that'd be about $240K bucks. Not bad. What troubles me- is I can never discern from their documents (my opinion the financials/10-Q are a convoluted mess of loans on loans, loans "split" endlessly, etc) to know what was his original amount owed and how much interest has he been paid, if any and how much did they owe him back? In other words- exactly how much "debt" did he get swapped to get over 6 MILLION shares?
The other part of the document, Table II, bottom entry jives also with last 10-Q in that they granted themselves a boat load of options- but unlike typical options which vest over about 3 to 4 yrs before you can sell them- they gave um these as "instantly" vested. So he got 10 MILLION (HOLY SMOKES) share given to him then 400K shares more on 8/1 and 9/1/2013 and they were "vested" upon grant- which means he could sell away. Look at the volume this past week- wonder if he's unloading some of those 10 MILLION shares? Wow. Those were at .02. So he'd be "in the money" big time on this "strange" run-up in price, to say the least.
That's how I "read" it and what it says to me. By doing these "debt for common shares" so called "swaps" - hate to say it, but to me it says they're setting up to "get out". That's just my opinion. But if you had faith in the company- why not hold debt and get paid back interest and all your original principal? By going to common shares- it tells me they may want to SELL NOW, get what money they can and be ready to "bail out" as needed. That's just my opinion. But by going to common shares (which the Northstar guys did also)- and vesting them instantly, it says you can/will be able to see at will. Dump for cash anytime you want. Again, that's my take on it. I don't like the timing of a big spike/run up like this given they all just got gobs of shares inside of 5 or so months ago? They won't sell direct- like through E-trade or something. They have firms that will handle that "order flow" for um- and I've seen you guys and the other boards mentioning several broker-dealer/MM symbols showing up on the "ask" a lot lately with "large size" orders to sell being put on the tape- those MM/broker names when you look um up are all well known street names for handling "institutional clients", as in "insiders" who need to unload say 5 million or more shares. Oh well, we'll see I guess.
AI
