Replies to post #44136 on Rim Semiconductor Company (fka RSMI)

[excel]

Cobra. It doesn't matter to anyone much in the big picture if they are floorless or not.

Just another huge red flag they have ZIP for a technology!

[jarsch501]

If I am correct about this, it is not actually floorless as you were saying because the agreement does not state that they have a duty to increase authorized shares beyond 900MM.

And again, I could be wrong with this interpretation.

Hound, you're correct that RIM can not issue more shares than they're authorized to. However, 900MM shares is 3x the current number of outstanding shares.

Did you realize what happened with the last financing agreement for $3.5 million?

On July 5th, the outstanding share count was over 110 million and is currently nearing 300 million. All you have to do is look at the corresponding chart for the number of outstanding shares in relation to the price and volume with the charts provided below.

Monthly Prices

Date 	Open 	High 	Low 	Close 	Volume 
 05/31/05 	0.170 	0.180 	0.150 	0.155 	5,845,300 
 06/30/05 	0.153 	0.160 	0.085 	0.105 	4,396,400 
 07/31/05 	0.110 	0.110 	0.051 	0.066 	10,328,300 
 08/31/05 	0.066 	0.072 	0.032 	0.037 	66,466,500 
 09/30/05 	0.037 	0.039 	0.025 	0.029 	32,869,100 
 10/31/05 	0.030 	0.036 	0.026 	0.027 	19,248,200 
 11/30/05 	0.027 	0.029 	0.020 	0.024 	59,475,400 
 12/31/05 	0.025 	0.027 	0.022 	0.026 	73,904,500 
 01/31/06 	0.026 	0.029 	0.025 	0.028 	71,078,700 
 02/28/06 	0.027 	0.275 	0.007 	0.138 	274,041,700 
 03/13/06 	0.138 	0.190 	0.121 	0.154 	35,983,900

Outstanding Shares:
111,292,781 *note: data was provided by transfer agent on Jul 5, 2005*
112,770,974 *note: data was provided by transfer agent on Aug 3, 2005*
154,258,600 *note: data was provided by transfer agent on Sept 1, 2005*
182,274,324 *note: data was provided by transfer agent on Oct 10, 2005*
185,111,641 *note: data was provided by transfer agent on Nov 2, 2005*
216,598,180 *note: data was provided by transfer agent on Dec 1, 2005*
247,292,560 *note: data was provided by transfer agent on Jan 3, 2006*
265,347,249 *note: data was provided by transfer agent on Feb 2, 2006*
293,314,722 *note: data was provided by transfer agent on Mar 2, 2006*

Today the price is lower and the financing amount has doubled. It will obviously take more than 200 million shares to convert but probably less than the 900 million authorized. We could go further and extrapolate those numbers to what may happen with this financing agreement. All things currently being equal(the same), .02 is being really, way too generous and <.01 is probably more realistic.

A few vaguely mentioned the increase in authorized shares was due to the possibility of a forward split too! lol

[spokeshave]

If I am correct about this, it is not actually floorless as you were saying because the agreement does not state that they have a duty to increase authorized shares beyond 900MM.

~~~~*sigh*~~~~~

If it makes you feel better to believe that reaching the limit for authorized shares makes the debentures not "death spiral" instruments, then have at it.

Consider this - if the remaining 600,000,000 were all used to convert the debentures, they would convert at an average share price of one tenth of a penny. That would mean that the share price would lose 99.3% of its current value. If that is not a death spiral in your eyes, then I can't help you.

I honestly don't know why you keep asking me questions if you refuse to believe the answer.