Replies to post #6416 on Pervasip Corp (PVSP)

[powerbattles]

Please NetCapital not in this to get beer money. Nice try

[pdkeesee]

So you expect everyone to believe netcapital did this to break even. They buy the debt for 75 percent off and then convert it to shares at a 400 percent premium. Wow those guys must be really stupid and broke. No wait they are very wealthy. They converted at .25 arthur n matter how you slice it, this will go up

[pdkeesee]

I don't care to look back and find the post but I believe it was you who said Pvsp owes netcapital the full amount of the debt now since they bought it. So why would they convert at .25 and break even when they could just collect it all? You make no sense. So in conclusion converting at .25 per share cost them .25 per share inessence they bought at .25

[Kanahele]

Arthur is wrong, again.

NetCapital hasn't purchased all of the debt, so you can't assign all of the interest owed as going to them. The debt conversion reduces the outstanding debt owed NetCapital.

If all $14M in debt was converted at $0.25/share, that increases the shares by 56M, but eliminates all of the long-term debt. Go back one month and ask yourself if you thought such a deal was even in the realm of possibility, when the PPS was under $0.01. At that time, it would be like eliminating the debt for $0.04 on the dollar.

Now, why would the original lender sell the debt at a 75% discount and why would NetCapital purchase the debt and convert it to shares? Answer: because NetCapital is bringing another deal together; one that wasn't available to the original lender. Those that can make the deals, stand to reap the rewards.