Replies to post #2963 on Genius Brands International Inc (GNUS)

[rickn23]

I wasn't hyping anything. I was offering my opinion.

The $13.75 million in convertible debt came with warrants for 65 million shares. Fully diluted share count should be over 100 million shares. The conversion price (on the debt) has already dropped to a little over 25 cents (making the debt worth about 55 million shares). If, GNUS sells more shares at a lower price, the conversion price drops again. If the conversion price drops to the 10 cent level, they will need more authorized shares.

GNUS has lowered the conversion prices on warrants and preferred shares to elicit revenue, in the past. In part, this is what caused the share price to drop so far, last year.

So, history (and logic) says, what I said, is relevant to the increase in authorized shares.

I would never say: "When people haven't a clue as to what they are talking about they should just stay silent, but, they don't. They have a need to feel important and relevant", but, maybe, it applies sometimes.