Replies to post #23048 on Lithium Exploration Group Inc. (fka LEXG)

[alexbh2285]

Thanks - what's the SEC reg that dictates the 6 and 12 months? I believe you that it exists but am curious as the conversion options in the agreements between LEXG and the convertible buyers say that it can be converted any day after issuance. It also says that registered shares via a DWAC will be delivered free of restrictive legends and trading restrictions.

The restrictions you mention would strengthen my point - meaning that this selling is not the dilution from raising funds to pay for the minority stake in the legacy field or any near-term PR. That will happen later when the convertibles convert which will be between the minimums you mention and the maturity and most likely within 20 days of the stock dipping below $.001 during that period.

From latest 10-Q on the latest JDF Capital convertible funding: "At any time on or after the Issuance Date, this Note shall be convertible (in whole or in part), at the option of the Holder ..."

[alexbh2285]

Meaning from the purchase agreements it doesn't appear that LEXG or the buyers think that conversion of these convertibles results in stock restricted under rule 144 (the agreements specifically say unrestricted stock). The agreements specifically state that conversion can occur on any date after issuance and in what is tantamount to saying that rule 144 does not apply, it says that the stock will be registered with a DWAC and not bear any restrictive legends. Are these purchase agreements illegal? Seems odd.