You say: ''The Leons are owed $2.6 millio n and the only way they can get that out is to convert to equity. As a practical matter converting to the common presplit doesn't help the price but rather hurts it with the increased outstanding share count.'' Pretty negative view of the situation (Not really a surprise from you)
I stand to be corrected but let's try to make it a more positive and possible scenario... assuming Leon put his money where is mouth is ...
1- Leon accept to convert the $2.6 million owed to him, trading it for shares he pays $0,0012 (as suggested earlier). He then get 2,150,000,000 new issued shares.
2- To reduce even more our debt situation, he and\or a friend of his invest another $1.4 million at the same $0.0012. That is another 1,150,000,000 shares issued.
Adding these 3,300,000,000 new O\S to the current 3,700,000,000 O\S, we endup having 7,000,000,000 O\S and a debt reduced by $4,000,000.
That being done our stock become much more attractive (good growing business and much reduced debt) and therefore a multipler of 15 times our current revenues would be quite realistic (15 times our actual $6,000,000 annual revenue TO START WITH or a $90,000,000 market value or a PPS of $0,0013 (15 times $6,000,000 divided by 7,000,000,000 O\S). Both Leon and the other investors are already 8% up.
Thereafter, a R\S of 2500 for 1 could be expected to render our bet an investment. That would make our PPS more or less $3.25
I do not know what Leon's plan is but I somehow do not believe he is stupid enough to accept to be owned $2,600,000 +, by a company he expect to go bancrupt.
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