Replies to post #18060 on Labor Smart Inc (LTNC)

[GrowthStocks99]

Yes sobe4life, You Are WRONG!

If full payments are made then there is no conversion. DUH!

But LTNC Doesn't seem to make any payments on notes lately. Have you noted the dilution perhaps?

If full payment is not made then:

(Now pay attention to the "subject to adjustment" wording)

From the 8K:

The Debentures bear interest at the rate of 11% per year (half of which is guaranteed, and in addition to the original issue discount) and are convertible into common stock at a conversion price of $0.15 per share (subject to adjustment in the event of stock splits, stock dividends, and similar transactions, and in the event of subsequent sales of common stock at a lower purchase price (subject to certain exceptions), and provided that, in the event the Company fails to make amortization payments on February 18, 2015 and March 1, 2015, each for 50% of the original principal amount of the Debentures, the conversion price will be adjusted to a variable price equal to the lower of $0.15 or 60% of the lowest volume weighted average price of the common stock for the 20 prior trading days).

sobe4life wrote:

I am wrong? Hahaha.... NOT!

I think we need to learn how to read a document IN FULL before we start going around calling me wrong!

There is a provision that provides for amortized payments. If the payments are made then the conversion reverts to a floor of .15 cents. Labor SMART has more than enough revenues to cover any amortized payments for monies already invested.

Not that it matters at this point anyways, since the note isn't even 90 days old and any payments made can't convert for another several months! DUH!!!