Replies to post #38257 on Artificial Intelligence Technology Solutions Inc (AITX)

[light1soldier]

380 k note will convert on nov. 30th...

good try, but you probably already know that statement isn't true...

simply put...

How do convertible notes convert?
A convertible note is a form of short-term debt that converts into equity, typically in conjunction with a future financing round; in effect, the investor would be loaning money to a startup and instead of a return in the form of principal plus interest, the investor would receive equity in the company. Oct 27, 2017


love those derivatives/liabilities...

What is 'Conversion Premium'
A conversion premium is the amount by which the price of a convertible security exceeds the current market value of the common stock into which it may be converted. A conversion premium is expressed as a dollar amount and represents the difference between the price of the convertible and the greater of the conversion or straight-bond value. Convertibles are securities, such as bonds and preferred shares, that can be exchanged for a specified number of another form (typically common stock) at an agreed-upon price. Convertibles can be converted at the will of the investor or the issuing company can force the conversion.

But my oh my can't wait for those fins..
whenever they come out...

omvs

Are Convertible Notes a security?
Yes, a convertible note is a “security” under federal and state securities laws. Accordingly, founders must understand that, even though a convertible note is debt upon issuance, it is no different than issuing shares of common or preferred stock for purposes of securities-law compliance.

What happens when a convertible note matures?
The company could either (1) pay back the loan (which is unlikely since it is probably out of money), (2) ask the investors to extend the maturity date, (3) convert the loan into the last round of Preferred Stock (if any) at a pre-determined (i.e. last round) price (or price negotiated at the maturity date)

SO just to understand once the note matures then it converts into shares.. :ie then the note converter sell the shares into market...
in this case at a very rapid pace so as to not file any ownership forms..


welcome to the OTC...