Replies to post #16568 on Greenshift Corporation (GERS)

[nobody12378]

One possibility is they needed cash immediately to fill up their retainer. Their intellectual property law firm is good, but they are sharks -- well known in the profession not to pick up a pencil if the retainer is drawn down. Since they could be in the middle of hearings right now, what would you do if your counsel said we are out of here unless we have another $100,000 cash today? You would be upset; you would determine that diluting is better than increasing your debt to YAGI and you would dilute your own mother's bank account if it was the only recourse. I am not saying that this happened I am providing a model to answer your question. If this is what occurred, then the common stock holders bailed out KK again and we better see some of the fruit of this endeavor and not have the fruit taken out of our reach as they have with previous maneuvers.

[StockinShane]

There could be a dozen different correct responses to that. I mean the answer is going to be pure speculation. I'm less concerned with 'why' right now and more concerned with 'what'. I'd rather pin down what happened and then I can move on to why it happened.

If it was dilution, As just one possible scenario in reference to your post.
A) The revenue is still not enough to cover the debt, much of last quarters revenue was from a 1 time thing that will not be included in Q2
B)Ditto
C)Ditto
D)They lost the law suit / need more money upfront in legal fees / need money for an appeal
E)Have not seen a penny from this deal and probably won't for at least another quarter

Maybe KK wants a big bonus for all his hard work, who knows... I certainly do not. I don't really care to keep guessing either. I'd rather look at what I saw happen and figure out what has taken place. There are reasons why dilution could have occurred, but I'm still stuck on 'what' happened.

I'm not convinced it was dilution either, I'm simply reviewing the facts and trying to make sense of them. If it was dilution, I would suspect there would be less shares on the bid right now, because selling a billion off didn't seem to dent the demand all that badly. But if I had to lean one way or the other, I would lean toward the dilution side because the factual pieces of the puzzle we have right now don't connect for a buyback in my opinion.