First off the OS goes up - that’s a conversion occurring that STARTED 6 months earlier when that converter became a note holder by LENDING the company CAPITAL.
CAPITAL that WAS utilized to get us WHERE WE ARE TODAY.
In NAU as the EXCLUSIVE tea company!!!
That’s like Coke being told by its shareholders “don’t spend a single dime to become the EXCLUSIVE soda at McDonald’s”
Seriously these shares are ALREADY out there. The amount that will be added to the OS is based on what the PPS is 1-7 days prior to each one being cashed in. Before the OS goes up it’s a dollar amount.
If the note holder lent the company $100 6 months ago then today it could convert at .00015 (50% of the lowest trade in the past 7 days - I think that was .0003) and they would get $100/.00015 or 666,666 shares to sell on the open market and the OS would go up 666,666 shares.
It’s REALLY simple.
If the PPS was at $1.00 the past 7 days and they converted that same note that they lent the company $100 for SIX MONTHS AGO, then the OS would go up $100/.50 (50% discount) or 200 shares.
Now same scenario but what if in the past 1-7 days the share price went to .0002?
$100/.0001(50% discount) or 1,000,000 shares.
Now if I was a note holder (and I’m not) and I KNEW what was happening with NAU and Jawea and Undone and all these GREAT things I’d seriously KNOW the share price was going to skyrocket.
So the most bang for my buck is to ALWAYS get in as LOW as possible.
So I do WHATEVER I can to push down the PPS so I can convert as low as possible (buy low sell high - same principle).
So I want 2’s to hit.
I only need the ask at 3 and bid at 2 because I can always dump a few shares to get that 2 print to show up 1-7 days before I convert.
Heck any note holder LOVES 1 bid/2 ask because then that million shares is more like $100/.00005(50% discount remember) or 2 million shares.
Now imagine they convert and the PPS runs on news of Jawea acquisition? Runs to .005 maybe?
They convert for a million shares at a low print of .0002 (ON $100 loan mind you six months earlier) and sell for $5,000!!!!
That’s some serious INTEREST to lower the PPS AS FAR AS THEY CAN.
Don’t allow your shares to be scalped by note holder games.