Replies to post #21790 on Universal Energy Corp (UVSE)

[Dr. King Schultz]

It's even worse than I thought: The CD holders can convert to 80% of the closing bid prices.

("... based on a price per share equal to 80% of the lowest three (3) closing bid prices of the common stock over the 20 trading days immediately preceding the date of such payment.")

Yesterday the closing bid was 0.0003, what was it the last days when the pps closed at 0.0004? Where can I find that info?

If those closing bids were three days on 0.0003, the CD holders convert already at 0.00024!!!

[mikeyk]

We all know about the conversion price formula, but you added the liabilities together 2 times. The discounts are factors of the repricing and are not added into the totals, the discounts account for losses due to the repricing, not an additional cost. Conversion pricing is dependant on WHEN requested, lowest of 3 closing bids in preceding 20 trading days with a 20% discount. So if last week it was requested to convert we had 3 closing days of .0007, so conversion was .00056, and they have been selling at .0004 and .0003 by constantly dumping, they are losing money on their investment, but the company gets the full write down on the debt repayment.

Promissary notes are being paid mostly with cash, and Raley and Watfords notes are both in default, they'll pay themselves back after the CD holders have been taken care of. There are multiple note holders on each CD (the Senior and Junior), not every single one is asking for conversion, some are holding off for a higher PPS and are only taking interest payments at this time. Raley needs to take care of the idiot note holders before he can address the PPS and share structure for the note holders that are holding off their conversions, they are already pissed off at the idiots that have cashed out.

The whole thing is a mess and very convoluted to understand. You need to look long term and at the bigger picture. Lone Oak work should be starting shortly, I believe it's another 2 or 3 wells on that lease. You have additional revenue/production growth going forward. You had a loss last quarter due to well shut ins from the hurricane. When the 10Q comes out it's already 2 month old news, theres only 1 month left in this quarter, so some of the debt that shows on the 10Q has already been paid/converted. Monthly conversion is staggered amongst only those that have requested it, others have deferred (put off) their payment at this time. We'll be ok in the long term, Raley knows who the idiots are and who is holding off until he can do something about the PPS, no point doing anything until the idiots are gone.

[Duffau]

Jack Frost speaks with cold dagger of truth.

AFter reading that, Only a fool would buy this stock.