Replies to post #5985 on Velatel Global Comm. (fka VELA)

[IsaacIronridge]

Ironridge Dilutes Faster

Authorized shares are not affected, however the outstanding shares are.

If VELA has 6 billion shares and pays off Ironridge, the OS stays at 6 billion.

If Ironridge is not paid, then they will request more shares...say half a billion.

OS goes up to 6.5 billion, and so on.

If he had any brains, George would want to stall to try to find a way to pay off Ironridge, thus keeping shares lower. If not, Ironridge requests more and the OS goes up, up, up.

[jjj373]

That is how the hedge funds make money. If Isaac is getting shares at a discount of say 25% of market - .000075 - and then selling them at every opportunity for .0001 they make .000025 per share. Not a lot until you multiply that figure by hundreds of millions.

Creates a market whereby they are able to do that. The company has no choice but to issue more shares as need because THEY AGREED TO IT.

I have posted before and will post it again. What is the current OS of VELA? The last REPORTED OS was 3,073,285,607 May 19. It has gone up substantially since and - imo - will continue to rise until it reaches the AS of 10 Billion. Then what? Shares bought today at
.0001 will be worth even less if they have to RS which I believe that they will.

It is a deep subject but many hedge funds can be likened to loan sharks. The reason they usually win when challenged in court is because the company AGREED TO THE TERMS and it is usually in the SEC filings. Why? Desparation, ignorance and/or COMPLICITY.

Desparate? Because it is the only funding that they can get.
Ignorant? They don't know what they are agreeing to.
COMPLICIT? Creates a market where there was none allowing insiders to sell shares. Liquidity.