Replies to post #18501 on ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

Alleyba says that.....................

.............in his opinion the news release today validates what the CEO said on the legends radio interview ......namely any notes are in the hands of his wife and perhaps himself (I do not remember but it was at the end of the call). No convertible outstanding debt bodes well for shareholders.

(1)
As I stated in a prior post to Bsav, having the bulk of the remaining convert notes be the 12% fixed that have conversion prices of .17 certainly helps in the short run, but the Piper will need to be paid eventually.

(2)
It is not technically true to say that there is no convertible outstanding debt. Per the 3/31/14 10Q:

The balance of the 12% Fixed Convert Notes = $648k
The balance of the 12% Fixed Convert Notes w/Related Parties = $113k
The balance of the 8% Variable Convert Notes = $51k
The balance of the 10% Variable Convert Notes = $33k
The balance of the 12% Variable Convert Notes = $24k

That is $869k worth of convert note debt balances still on the books as of 3/31/14.

And this Typenex extinguishment is the only one SCRC has announced since the 10Q was issued. Per the Q3'13 10Q, we see that the Typenex note was at 8%. And per the Q1'14 10Q, we see that SCRC disclosed that there was only ONE note left in this category. Therefore, from today's PR, we can logically deduce that it is this $51k balance above in the 8% category that was extinguished and is now effectively a ZERO balance.

Aside from that, it is a relief to know that in the short term, there is only the $33k and $24k notes (the 10% Variable and 12% Variable, respectively) that can convert at any time -- whereas the lion's share of the note balance (the $648k of 12% Fixed and $113k of 12% Fixed w/Related Parties) won't convert until later on at .17 (which means that any conversion will likely not take place until the sp is well into the .20's at a minimum, IMO). But again, as mentioned above, this dilution from these .17 conversions is ultimately a matter of when and not if.

We need material news on a consistent basis to create the buying pressure necessary to absorb these shares in as painless a manner as possible.