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vawedo

09/25/09 12:42 PM

#35050 RE: The_radman #35048

good question..let me go back to the SEC filing..I have to reread a portion..I'll come back to you later.
One thing struck me though..I do not think they have shorted a lot and use their converted shares to cover...later

vawedo

09/25/09 2:01 PM

#35066 RE: The_radman #35048

Okay Rad..had dinner in the meanwhile and then reread this awful prose in the SEC filing

http://www.sec.gov/Archives/edgar/data/880643/000114420409049829/v161102_s1.htm

I have not come to terms with it, but here are some ideas.If you turn to page 22 you will find a chart with 7 columns.I added up all shares in column 4 which is called: Maximum
Number of
Shares
to be Sold
Pursuant to
this
Prospectus

and it added up to roughly 110Mill.

Furthermore it is my understanding that in the earlier discussed 160 Mill all warrants are included and warrants can only be excercised partly in October and the balance from January onwards.I cite from page 22:

The Issuer’s 15% Senior Secured Convertible Promissory Notes due June 2011 (the “June 2008 Notes”) and the Issuer’s 8% Senior Secured Convertible Promissory Notes due April 2012 (the “April 2009 Notes”) can only be converted to the extent that, after such conversion, the Reporting Persons would beneficially own no more than 4.999% of the Issuer’s Common Stock. The July 2009 Notes and the September 2009 Notes can only be converted to the extent that, after such conversion, the Reporting Persons would beneficially own no more than 9.999% of the Issuer’s Common Stock. Warrants issued in April 2009 (the “April 2009 Warrants”) are not exercisable until after October 2, 2009, the July 2009 Warrants are not exercisable until after January 7, 2010 and March 4, 2010, respectively, and the September 2009 Warrants are not exercisable until after March 4, 2010, and after each such date, the warrants are only exercisable to the extent that, after such exercise, the Reporting Persons would beneficially own no more than 4.999% of the Issuer’s Common Stock. Additionally, the July 2009 Notes and the September 2009 Notes can only be converted beginning the earlier of (i) two weeks from the effectiveness of a resale registration statement registering the common stock underlying such notes and (ii) the date that is six months following the issuance date. The beneficial ownership total in this column assumes that this registration statement has been declared effective and the July 2009 Notes and the September 2009 Notes are currently convertible according to their respective terms. The shares numbers and percentages set forth in the columns below reflect these limitations on conversion and exercise.

I am not sure I have answered your original question..so in short..they could if they so desired dump 110M on the market but I very strongly doubt they would do that and crash the pps and diminish their returns.Also, as long as they do not convert, they are paid 15% resp 8% interest and that's not exactly dog poop either.