Replies to post #9653 on Quanta Inc (fka QNTA)

[Dragon Lady]

Agree, the 350k has been out in the open well before the CC. 350k at .045 is like 8 million shares. How much is being converted a day, that we don't know. We have been averaging over 2 million+ shares a day for weeks now, how much of that is retail, MM manipulation, debt converter we don't know.

The note is done and it's all games now is the question. I doubt the note holder is converting a 100k a day.

Well, per my past experience per these damn note holders - they trickle out their shares often, at surprisingly slow rates. Remember too - they get a discount to market on their shares.

Thus, they hold a lot more shares than say $300,000/today's market price

They get about a 30% discount to market price is typical on convertible debt.

Thus, they convert in what's called "tranches" - they call-up QNTA and say, "We want to convert $50K worth of the $300K owed, send us the shares please".

QNTA then sends them the correct number of shares at 70% of the LOWEST most recent price of the past X number of days.

Example: The note holder gets a big rip down like today to .045 and then calls up QNTA to convert $50K of the note balance left of say $100K still to pay.

They get their shares at .045 (lowest most recent price) X .70 the 30% discount to market = .0315 per share

$50K / .0315 per share = 1,500,000 shares or so to convert $50K worth

NOW - they then trickle those 1.5 mil shares out into the market over a few weeks often as they do not want to crush the price.

LOOK AT THE I-HUB "DAILY TRADES" tabs under the chart when one clicks on it- on a stock such as this which is still pretty LOW VOLUME/THINLY TRADED it ONLY TAKES a daily "imbalance" of a lousy 100K shares "to the sell side" vs buys and it can drop it 3% or 5% easily.

THE GOOD THING - is we've clearly had some new buy interest and it's holding up "decent" with recovery buying coming-in almost daily to make up for the dilution slack, typically "buying it back up" to flat into the close almost every day recently = a very good sign !!

NOTICE TODAY: The INSTANT it spiked up, it's then sold-into-strength which is likely the note holder selling 20K to 50K chunks to say do an "avg" 100K shares a day. It thus takes 15 days to pay back $50K of the note owed as converted to 1.5 million shares.

One can see - it thus is not far fetched to take a few months to burn-off even $300K left in notes since that ZOOM CALL listed the balance as "About $300K left".

It's called "selling in tranches" - like blocks or waves.

With the 30% discount plus selling into the spikes- these POS toxic lenders EASILY make 50% ROI in 6 months on their money (100% annual return) and with some bullshit criminal naked shorting, etc they can do TWO TIMES that and make 200% a yr or more on loaning out $100K blocks at a time with near ZERO RISK due to them always getting that 30% or more discount to face value.

It's a dirty game and should be legally banned - IF we had a congress worth 2 shits and who aren't ALL criminals on both parties who ALL make bank from Fraud Street !