Replies to post #30793 on Intelligent Highway Solutions Inc (fka IHSI)

[Smilin_B]

I agree with your assessment.

Always have

To keep this short, as I am in the midst of Hurricane Irma's wrath - -

But, if I may explain my present stance and reasonings:


IHSI's Authorized Share Count presently resides at 10,000,000,000 shares.

IHSI's Outstanding Share Count presently resides at 5,764,605,546 shares.

What's interesting to note, and what I feel is very relevant to point out is that there is an ADDITIONAL 14,777,479,522 share "equivalents" and 448,57 exercisable warrants and options for a total of 20,542,533,638 shares of common stock and common stock equivalents as of the end if June

https://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=12246063

20,542,533,638 shares of common stock and common stock equivalents yet the A/S resides at 10,000,000,000 shares

With 10,000,000,000 shares authorized, there are insufficient common shares in treasury to meet all of the Company’s common share equivalents obligations. 14,687,479,522 of the common share equivalents arise from outstanding convertible notes payable


Cash will need to be raised adequately enough to service "existing" obligations upon CD note holder debt to equity conversions.

But the unknown factor remains, "Is IHSI management continuing to issue NEW cd notes at the 50-60% discount to .0001/share" ?

In their latest 10Q filing, it stated "The Company plans to remediate this shortfall either through a reverse stock split or an increased in the authorized common stock of the Company.

Obviously the A/S will need to be increased to meet this shortfall.

My fears (and what got me thinking long and hard about dispensing a large part of my core holdings at break even), is the fact that once the A/S is increased to meet this shortfall, it would have to add ADDITIONAL shares to the A/S to make room for ADDITIONAL cd note issuances if they intend on continuing to raise capital by way of debt to equity conversions.

Now it's "nice" of management to state that they would like to seek more less dilutive financing and consolidate so that they no longer have to tap the capital markets to service it's debts - but, to date I personally have seen no evidence of this debt consolidation/financing even in the works.

The verbiage used in their most recent PR stated "No Reverse Split at this time"

Yet in the 10Q filing it states "The Company plans to remediate this shortfall either through a reverse stock split or an increased in the authorized common stock of the Company"

In my opinion, they are going to implement BOTH.

The "No Reverse Stock Split at this time" covers them because "at this time" literally means "at this time".

Why they couldn't commit to a more finite statement such as "We have no plans to implement a Reverse Stock Split in Fiscal 2017", is beyond me - and it is a reason why I personally tool pause and chose to recover most of my investment dollars here.

I've also made many suggestions to management to combat the naked short selling as well as Cellar Boxing issues. Unfortunately they have not responded to my queries in any degree of informative response.

So there you have it, my concerns in a nutshell

Let me know your thoughts

[Smilin_B]

In my previous post, I erred on my current up to date Outstanding share count

I apologize

The present O/S, as of August 28, 2017 resides at 7,522,812,251 shares

Obviously the increase from June 30th was attributable from existing CD note conversions at the 50-60% discount to .0001/share

I anticipate these conversions to continue and in my opinion, when these note holders come to market, if the bid is .0001 they simply wack it and when the ask is .0001 it's typically them trying to monetize on the offer.

I'm tired, but wanted to at least get a few of my points fired off

I do believe they are valid.