No at $0.02 that’s just the $2 million in convertible notes held by Weiner and associates.
The really toxic debt is held by about half a dozen companies and conversion started last month, consequently the stock went sup-penny for the first time, and it goes on all through the summer.
KMB Worldwide, Inc. LG Capital Funding, LLC. JSJ Investments Inc. Rock Capital, LLC. Vista Capital Investments, LLC Coventry Enterprises, LLC. Typenex Co-Investment, LLC JMJ Financial
There’s no way to know how many shares until we know the stock price at the day of conversion. Most of the notes have a 40% discount on the lowest trading day out of the past 20 at the time of conversion. For example the most recent note to have converted is JSJ Investments’ first note (they also have a second). They probably got around 7 million shares at about $0.0075. they are likely the ones selling at this sub-penny level since they would be the only ones making money from it. What is important is that these kind of lenders going for 40 to 50% discount on the lowest trading really don’t care about the price of the stock nor the future of the company. As soon as their shares convert they are making money. All they need is being able to unload these shares.