Replies to post #858 on MEDirect Latino Inc (fka MLTO)

[dickmilde]

What he is saying is that the lender has an agreement that he can convert the loan into common shares with an effective share price equal to the lowest share price conversion that takes place after the loan is effective. This is a common form of "protection" for lenders. Since Towsley and Talarico converted at .0001 that makes for a HUGE number of shares that are available to the lenders.

I haven't read the loan details but this appears to be the case.

Dick Milde

[amazingkarma]

Well, it's quite simple. Having been around pink/OTCs for over a decade, one only has to look at the fact that the Lender now owns more than 50% of the company meaning they can unilaterally raise the AS to as many shares as they need to convert.

Simple. The really sad part is that the conversion price of .0001 wouldn't change with any reverse split, further diluting any common shareholder equity.

Sad. I've seen mismanagement destroy many otherwise viable companies, but this looks like it was an insider manipulation scheme from the get go.