Replies to post #225215 on On4 Communications Inc (ONCI)

[DewmBoom]

Also the bears with their scare tactic did them a great favor. They managed to screw investors bringing the price to 9. Invest in the company and not in what note holders do. That is not in your business.

[moneym8ker]

Okay Dewy... I’m going to try this one more time then I give up:

You loan Steve Berman $10,000.00 in a high risk loan.

He agrees to pay you 12.99% interest on the loan.

He also agrees to issue you $10,000 dollars in Convertible Notes. These notes, upon maturity are convertible to shares at a 50% discount to the lowest of the prior three trading days after the Notes have matured.

Let’s say 6 months is the maturity date.

Fast forward 6 months.

The notes matured 3 days ago.

You now get either:
1.) Your $10k back and you’ve been collecting 12.99% since the loan

Or

2.)You get $10,000.00 worth of ONCI shares with a 50% off coupon and you’ve been receiving 12.99% interest.

Now if there were no coupon and you just got $10,000.00 worth of shares you’d have 11,111,111 shares at $0.0009.
There is a coupon though. It’s a coupon for shares at 50% off. That means you now get 22,222,222 shares at $0.00045.

You sell your 22,222,222 shares at today’s price of $0.0009 and that gives you $20,000.00.

Your original loan to Steve was $10,000.00.
For 6 months you collected 12.99% on the interest each month.
You converted your loan into 22,222,222 shares and sold them at market for $0.0009.

Your loan to Steve got you your $10k back plus interest PLUS ANOTHER $10k.

See?

See how that’s not at all break even? You just made over $10k in pure profit.

Meanwhile, the shareholders get diluted 22 million shares.

22 million shares seem like small potatoes?

Well...take ONCI’s most recent $90,000.00 loan. Do the same math. I’ll save you the legwork...that $90,000.00 loan at today’s prices would cost the shareholders 200 million shares.


I can’t help you if this doesn’t clear up things for you.

Here is the mcdreamy of mcdreamy outcomes for you as the lender:

Same scenario above where you got your 22 million shares at $0.00045 and before you sell BIG NEWS HITS and the stock goes from $0.0009 (remember that you got yours at $0.00045) and ONCI skyrockets to $0.01 and then you sell.

You loaned Steve $10,000.00 and big news hit before you sold and that loan earned you $222,222.00.

So while it’s in your interest to gamble, you don’t typically hold the shares because you know you’re diluting them and so are other note holders. So while there is a chance you’re holding when big news hits it is more likely that the shares you’re now holding will be diluted and instead of earning $10K in pure profit you’ll be losing parts of that $10k if you hold.