Replies to post #16984 on Seven Arts Entertainment Inc (SAPX)

[sbc357]

And there is your second load of dilution shares for today, courtesy of Peter Hoffman.

[sbc357]

We are getting closer every month, LOL.

this scalping has to do with dilution like

my freaking a..

we'd be up to 500 million after 8 months of this if that were the case

I think now EVERYONE can see how OBVIOUS this rampant dilution is.
If not:

...require issuance of 16,363,636 shares of common stock which is more than the current authorized capital stock ...the percentage ownership of existing stockholders would be diluted accordingly.

and

...contemplated private offering (the “Potential New Offering”) may consist of shares of either common stock, convertible preferred stock (“Convertible Preferred Stock”), convertible debt (“Convertible Debt”), and/or warrants to purchase common stock, aggregating up to 15,000,000 shares of common stock,...
Increased Dilution
The proposal being voted on at our Annual Meeting is related to the Potential New Offering. We would have approximately [ ] shares of common stock outstanding if all the Convertible Preferred Stock and/or Convertible Debt is converted into common stock and all the New Investor Warrants are exercised. You should, therefore, consider the potential dilution in determining whether to approve this proposal.

and

Potential Negative Effect on our Stock Price
If Proposal 5 receives the necessary approval and we are authorized to issue up to 7,500,000 additional shares of our common stock upon the conversion of the Convertible Preferred Stock and/or Convertible Debt and the exercise of the New Investor Warrants, all of those shares will become eligible for sale in the public markets, after expiration of the six-month holding period required under Rule 144 of the Securities Act of 1933 and subject to the terms of the Potential New Offering. These shares could become eligible for resale in the public markets earlier if, subsequent to the sale of the Convertible Preferred Stock, Convertible Debt or common stock, we file a registration statement with the SEC covering the resale of the shares and such registration statement is declared effective. Any such sales, or the anticipation of the possibility of such sales, would represent an overhang on the market and could depress the market price of our common stock.

Consequently, we get this:

increase the number of authorized shares of capital stock from 50,000,000 shares to 250,000,000 shares.

Almost a third of the way there!!!!
Are you convinced of dilution now???
All words from the company. The company states it very clearly in its latest filing.
If I cannot convince peeps of how rampant the dilution is and has been, maybe the company's own words can finally convince you.
These are the statements from the company that you CAN believe.