When Cellucci says “not true” he is correct to a point…albeit a small technical one. The note holders are not going to convert 1.5 Billion shares on Friday. That is not how they work. The will only convert the amount they can reasonably expect to sell within a short period of time. They can convert partial amounts, and that is usually how they do it.
They do it this way for a couple of reasons. First, at no point do they want to hold more that 4.99% of the OS because above that triggers reporting requirements to the SEC. Second, once they convert they then hold stock at that price and should the pps drop after they convert but before they sell, and drop below their conversion price, the lose money.
So they convert in smaller blocks and then sell those into the market before they convert the next chunk.
As I have pointed out, someone has been selling pretty consistently from a block position almost every day for quite some time…and the OS has been increasing steadily.
RIGHT NOW…there is about $300K in $0.0005 notes that can convert and have been able to since early November. So far it appears they have converted and sold about 175 Million shares in November.
What happens on December 8 is the amount of convertible debt that is convertible into FREE TRADING stock NOW goes from about $300K to close to...$900K…ALL at $0.0005.
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