Replies to post #29979 on Decision Diagnostics Corp (DECN)

[bababooyah]

Yet the share price keeps going up.

weeeeeeeeeeeeeeeeeeeee LOL

[DrZem]

1,750,000 Preferred E Shares are Irrelevant
The relevant number of shares are those actually issued, the the potential maximum

I don't care what other investors paid for their shares. If ALL of the issued Preferred Series E shares get converted to common stock, we're talking about something like 10% dilution. Focusing on the price that other investors paid is naive - it is what it is and doesn't matter to current or future investors. Those terms are set.

This is especially true for DECN. Folks that loaned money to DECN accepted an equity share in lieu of their loan. They forgave their loans to DECN in exchange for shares in DECN's future growth. I consider this to be a big positive.

[powerwalker]

Alydar, please bear with me in the analysis below.

I looked at the Shareholders' Equity schedule in the 2015 annual report and have a question that you may have asked and/or answered previously.

In January 2015, 302,860 Pref. E shares were issued in satisfaction for expenses of $75,715, or at a conversion rate of 25 cents per each "E" share.

During the same month, 2,725,000 common shares were issued in satisfaction for expenses of $670,025, or at a conversion rate of 24.6 cents per common share.

The common share price in January 2015 appeared (from chart on iHub) to be in the mid-20 cents for much of the month.

Later in the year, in May and September, the 302,860 "E" shares were converted into 4,240,040 common shares, which yields a common share price of 1.79 cents per common share.

Something does not seem right: why were some vendors offered "E" shares and others offered common shares with the approximately same conversion price, though with the "E" shares yielding 14x as many common shares.

Your help or anyone else's will be greatly appreciated.