Good research diy investor. So we should be seeing a form 8 filed very soon if this is what is happening. Mr. Frank is a major stockholder, and has a lot of his own money tied up in the company, he must believe there is value here. This theory would explain the regular price drops while increased trading volume has occurred.
"The debentures are convertible at any time at the option of the holder into the Company’s common stock at a fair market value of 80% of the lowest closing bid price per share for the 20 trading days immediately preceding conversion."
Although this theory does sound reasonable because it would explain where much of the volume is coming from, it still does not account for the gradual increase in stock price since the beginning of the year --- at 80% of the lowest closing bid price per share for the 20 trading days immediately preceding conversion, shouldn't we be seeing a dramatic price drop? Also, wouldn't Frank (or the company) convert the bulk of these debentures all at once instead of dribbling them out over time? It seems to me that Mr. Frank would be getting a pretty raw deal if the conversion is happening at the lowest stock price level. On the other hand, maybe Mr. Frank wants the maximum number of shares he can get in the expectation of dramatic share price appreciation in the near future --- is this possible?
Excellent work diy investor, you are giving the board something to think about. Although this theory doesn't answer all the questions, it may answer some and that may be all we can hope for.
Kgem
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