Replies to post #14349 on Transportation and Logistics Systems Inc (TLSS)

[Bigfootbud]

as long as the company makes that possible :)

[TJG]

So once the debt is paid off, shouldn’t those shares go away and make room for this to get back to $5-$16?
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The shares are always there once they are converted from the AS to common shares so the note holder can sell them and get their money plus profit back from the original loan.

That is what dilution is, a company borrows money from one of many Convertible Debt lenders and in turn pays that money back with shares from the company. Base on the structure of the deal the shares have to equal the amount of money due back. If you borrow $500 and the interest and pay back says you pay back $800 you give them shares until that $800 is paid back. In the movies they call them Loan Sharks... When the company pays them back its with stock shares taken out of the company treasury, or the AS. Once taken from the AS to repay the loan they are out there for the public to keep trading them.

Here is the catch, they sell as many as need until the debt is paid...so they, the lenders, dont care for the most part what the Price of the stock is. The cheaper the price the more shares it takes to pay it off, so the higher the Float, the trading shares, number gets.