Replies to post #80013 on Pacific Gold Corp fka PCFG

[uwf2466]

Promissory notes, piece by piece:

1. Including interest the balance on the loan at September 30, 2011 was $2,225,281. This principal is owed to the Chief Executive Officer. This note is convertible into shares of common stock of Pacific Gold at $0.05 per share. Extrapolating to December 31, 2012, the balance on the note will be $2,517,701. Assuming the CEO immediately converts, this will equate to 50,354,024 shares.

2. As of September 30, 2011 Pacific Gold owes $933,140 in promissory notes and accrued interest. The $500,000 new VWAP promissory note was, if I interpret the $933k balance correctly, part of the total of all the other promissory notes. Also part of the $933k is $219,000 convertible at $0.07 due on August 10, 2013 (Source). At face value, with no interest added in, that amounts to 3,128,571 shares for the 7¢ note. The VWAP note has had $50,000 converted, representing about 5,000,000 shares. The remaining balance, assuming the conversion happened now would represent about, without accrued interest, 45,000,000 shares. This leaves about $215,000 which I cannot attribute to any other conversion amounts.

These are rough calculations, if anything seems out of whack, input is always appreciated, but at this point it amounts to an approximate share count of:

CEO 5¢: 50,300,000
VWAP: 45,000,000
OUTSIDE 7¢: 3,100,000
Total: 98,400,000

Of the debt maturing, 2 MILLION DOLLARS, is due to the CEO.

At this point, the company's debt is held primarily by the CEO. This doesn't even INCLUDE the 155,000,000 shares held by Landau and the other 98,000,000 held by Geisler. No one holding this stock anymore, I hope, is lacking common sense. These guys MUST HAVE AN EXIT STRATEGY. The only viable exit strategy is production.

What fool would assume that these guys, along with the VWAP note holder, can DUMP MILLIONS AND MILLIONS AND MILLIONS of shares which would INSTANTLY drop this right down to worthless. Not to mention Landau/Geisler would have to file their sales with the SEC giving shareholders notice. I don't think any of us will be sticking around after that notice.

Maybe I'm the fool, I admit it, almost six years in and 1,840,000 shares. I don't know, DUDE....your odds of being right are just as good as mine are.

But you being here speaks to the fact that you are interested in the outcome.

[techtrade]

Yes, I know you can't chart dilution.

And finally, you give us the specifics you've been dancing around for a while now. Those are legitimate concerns, and not to be taken lightly. But it all comes down to their ability to mine gold IMO. If one was to believe that the 3Q2011 results represent the best they are capable of, then by all means they should have sold a long time ago. If one believes that was just a temporary setback and their 4Q2011, 1Q2012, etc. numbers will be better, than this is a great buying opportunity.

Also, it could be argued that PCFG's willingness to modify the note for the benefit of the new holder represents confidence on the part of PCFG that the share price will be much higher by the time that note is due. The conversion rate of .05/share to the company owned by the CEO could also support that arguement.

Obviously, everyone is entitled to their opinions...just a matter of time before we find out who is right.