Thanks for the laugh. You do understand that they can just short the stock right? They don't need to hand the company 400K first, if they think the share price is going down then they can just short 4 million shares right now if they want to. A number of brokers offer shorting for OTCBB stocks. What you're thinking of is the toxic financing like what Cornell does where they get shares at 50% of the share price, so the lower the price is, the more shares they get so they short and then cover when they convert. You need to learn the difference. Since this funder can convert at a flat .10 there is no benefit at all for the funder to ever short the stock. But there is plenty of incentive for the funder to want the share price to rise in the next 6 months. But you actually think this was some grand plan to try for a 20-30% gain in some lightly traded penny stock??? Wow, I thought you knew this stuff?
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