Replies to post #59532 on PPJ Healthcare Enterprises Inc (PPJE)

[Det_Robert_Thorne]

Maybe 700M before it moves to $0.0002

The fact that VFIN and VNDM are on the ask could mean that PPJE is now seeing the conversion of the $50K note issued to GPL Ventures in early December, 2016. Note the following paragraph from the Dec 6, 2016 PR announcing PPJE's new investing partner:

Additionally, on Dec. 5, 2016, the Company issued to GPL a Convertible Promissory Note (the "Note") in the principal amount of $50,000 as payment of a commitment fee to induce GPL to enter into the Agreements. The Note accrues interest at the rate of five percent (5%) per annum and is due in full on or before Dec. 5, 2017. The Note also prohibits prepayment of the principal. GPL has the right to convert all or any portion of the note balance at any time at a conversion price per share of seventy percent (70%) of the lowest Trading Price during the Valuation Period (as defined and calculated pursuant to the Note), which is adjustable in accordance with the Note terms in the event certain capital reorganization, merger, or liquidity events of the Company as further described in the Note. [bolded emphasis added by me]

http://www.otcmarkets.com/stock/PPJE/news/PPJ-Healthcare-Enterprises-to-receive-up-to--5-million-investment-from-GPL-Ventures?id=146497&b=y

At PPJE's current price of $0.0001, the notes would convert at 70% of that, or $0.00007, so $50,000/$0.00007 would equal approximately 714M shares, and it could be a lot more than that, because a trade at $0.00001 would allow conversion at $0.000007. In that case, converting only $5,000 of the note would add the same 714M shares.

That's why Basu kept the AS at 20B.

IMO, BASU will try for another RS soon, because GPL probably won't want to issue part or all of the $5M in new investment otherwise.