Replies to post #10454 on SunHydrogen Inc (HYSR)

[Sniace]

100% ok. I understand that; They have given 5.5% of HYSR in exchange for financing; They comucaron when they gave them actions and they passed of the 5% that says the law, and yesterday they communicate that they are selling them and when lowering of the 5% that marks the law they return to communicate that they are underneath. Now you can sell them without re-communicating.

Greetings from Spain and good luck to all of us. Merry Christmas

100% ok. Eso entiendo yo; les han dado el 5,5% de HYSR a cambio de financiacion; comucaron cuando les dieron acciones y pasaron del 5% que dice la ley, y ayer comunican que van vendiandolas y al bajar del 5% que marca la ley vuelven a comunicar que estan por debajo. Ahora ya las pueden vender sin volver a comunicar.

Saludos desde España y suerte a todos nosotros. Feliz Navidad

[kennypooh]

Excellent post and 100% correct!

Convertible note holders don't care about the price, since almost all the toxic convertible notes convert at a percentage of either the current stock price, or a percentage of the VWAP for a certain number of days, or the lowest price (or average of the lowest 3 prices) in a certain number of days. In otherwords, they are guaranteed to make money regardless of the price, and ironically, they actually will make more money at lower trading prices rather than higher ones.

What counts is not the price, but the volume. Since they make money regardless of the trading price, they just need people to take the shares off their hands. That is where the promotions and some bogus announcements by the companies come in. What the convertible note holders (they are not really "investors" as they don't meet the criteria) and CEO do, though, is make up stories to get new buyers into the stock so they can dump.

These floorless convertibles are known as "toxic death spirals" for a reason. They ultimately kill every stock that issues them.