Replies to post #87714 on Marani Brands Inc. (MRIB)

[Matthew Berg]

CJ, the estimate of 4 billion shares or whatever it was in the article may or may not be correct but calculating the fully diluted basis is most likely far greater than 700,000,000 shares or just the current A/S. To calculate the fully diluted basis you need in include all financial instruments that could potentially be converted into shares whether it be warrants, options, debt conversion, convertible notes and/or bonds, etc. And yes, employee options, warrants and future compensation of the like has to be included in that calculation. You also need to consider the conversion rate/ratio. Given the conversion ratios we've seen in most if not all of these deals anywhere from $.0001 to a high of $.0007 I think you'll find that any fair conversion ratio given all current convertible instruments would result in quite a large addition of shares on that diluted basis. Is it 4 billion? Hard to figure especially not knowing the deals on the preferred, notes and any other debt instruments and I haven't tried to calculate it but it's going to be a pretty big number and quite a bit more than 700,000,000 especially with the historical conversion ratio. You can't use the current PPS to calculate it. You must use the fair value conversion ratio.