Follow my thinking. ECOB has traded over 100 million shares in volume over the last two days due to terrific news of an exclusive licensing deal. With only 104 million shares outstanding...and very active buying...the gain in the share price should have been huge. What happened? Why no gain in the share price with such huge demand? Why did the share price actually GO DOWN? Well... as the buyers placed orders, convertible debt was converted into new shares... and the new shares were issued to fill the huge buy orders, so no increase in the share price happened. The law of supply and demand was out of balance... because of almost UNLIMITED supply. Instead of buying equity in the company, the buyers were just paying down ECOB debt by buying new shares, converted by the convertible debt holders. All these 100 MILLION plus new shares will soon show up as added "outstanding shares" and dilute the hell out of every current shareholder. The real problem is the huge amount of convertible debt. Someone tell me I'm wrong. This should not be legal.
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