Replies to post #11786 on DealerAdvance Inc. (DLAD)

[CBGB]

Charlatan been wrong so far, yet he still spouts. Maybe a BK means a BK....everything cleared and start over. That's why we have a BK court.

[CSykes]

Hmm.. considering the normal structure of a Ribostky pipe I will admit that the deal DLAV struck is mild compared to some previous deals. But the notes are convertible in a toxic fashion..

The Notes carry an interest rate of 8% and a maturity date of May 25, 2010. The notes are convertible into our common shares at the Variable Conversion Price (as defined hereafter). The Variable Conversion Price shall be equal to the Applicable Percentage multiplied by the average of the lowest three (3) trading prices for our shares of common stock during the twenty (20) trading day period prior to conversion. The Applicable Percentage is between 50% and 60% depending upon the status of the registration statement to be filed by the Company.

I did find the point you brought up about restriction of 5% total conversion in outstanding. I would have to do some DD on the structure of the preferred shares owned by management. If they are convertible then we would have to take that conversion into account. I don't see Corey having any restrictions, thats not how he operates. However I will concede that dilution might be controlled to some degree. I need to do more DD before I can comment factually.