Convertible Debt
From what I've been able to gather so far, the remaining Convertible was in the amount of $60,000 back when I began the due diligence.
There are a few things to understand about CB's and the buyers of them so I'll try and simplify it as best I can.
Typically, the firms that buy CB's from OTC and Pink Sheet companies have two levels of interest - 1) making a profit by way of immediate conversion. 2) trading around their positions both long and short also capturing profits from market movement emanating from their selling and also buying (long and short covering).
Last years volume and massive share issuance came from several CB holders and the total amount issued to them was somewhere around $1.1mm in CB's.
I'd estimate that the current amount left is around $8-12k so at a discount of ~40%, that would end up equating around 13mm new shares to be issued.
Bear in mind, the shares don't get issued first then sold, they are sold short against the CB then covered when the CB shares are exercised so the recent volume is indicative of their brokers/market makers trading it for them and providing blocks of shares sold short that they will then cover.
Even with anti-short selling clauses in agreements, lock-up agreements and other mechanism's in place, CB holders have multiple ways around this so frankly, that lock-up is meaningless.
We'll just have to wait it out until they complete then try and find a way ahead from there.
Once they are done, it makes it considerably easier to create a strategy to build the company whether it's done thru acquisitions or organically.
Please allow me some time to get things done.
All the best in the markets!
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