Replies to post #46058 on DD Support Board and Research Team

[samsamsamiam]

The reason they bumped up the A/S was because they did need over 1 BILLION in shares to cover convertibles. and if it dropped to .001 they need twice as much.

http://www.sec.gov/Archives/edgar/data/1451514/000135448813001881/mine_pre14c.htm

AMENDMENT OF ARTICLES OF INCORPORATION

GRANT AUTHORITY TO THE BOARD OF DIRECTORS TO AMEND THE ARTICLES OF INCORPORATION TO INCREASE THE AUTHORIZED NUMBER SHARES OF COMMON STOCK

Purpose: Minerco’s board of directors has unanimously adopted a resolution seeking stockholder approval to authorize an amendment to our Articles of Incorporation to increase the number of authorized shares of common stock from 1,175,000,000 shares to 2,500,000,000 shares. Minerco’s Articles of Incorporation, as currently in effect, authorizes Minerco to issue up to 1,175,000,000 shares of common stock, par value $0.001 per share. The board of directors has proposed an increase in the number of authorized shares of the common stock of Minerco and a stockholder holding a majority of the outstanding voting power has approved the filing of the Amendment. Upon the filing of the Amendment, Minerco will be authorized to issue 2,500,000,000 shares of common stock and the authorized number of shares of preferred stock, will remain the same.

The board of directors believes that authorizing this increase in the number of authorized shares of common stock is in the best interest of Minerco and its stockholders in that it could be obligated to issue common stock upon conversion of certain existing outstanding convertible debt and preferred stock in excess of the amount authorized and it will provide the Company with available shares that could be issued for various corporate purposes which may be identified in the future, including acquisitions, stock dividends, stock splits, stock options, convertible debt and equity financings. On April 5, 2013, Minerco had 1,988,862 shares of common stock available for issuance after taking into account all shares reserved of convertible securities which we believe may not be sufficient to satisfy all outstanding debt obligations

On March 25, 2013, we had debt in outstanding principal balance of $858,047 convertible into shares of common stock based upon the closing price of our stock on the conversion date ranging between 35% and 60% of the closing price of the stock. In addition, our Series A preferred shares converts into shares of common stock at a rate of 10 shares of common stock for each share of preferred stock Since the debt does not convert at a fixed conversion price it is difficult for us to accurately quantify the number of shares that we will be required to issue upon such conversions. Using the March 25, 2013 numbers, if all of the Company’s outstanding debt, warrants and all of our preferred stock were to convert to common stock, we would be required to issue approximately an additional 1,100,000,000 shares, which would exceed the number of shares currently available for issuance (even when including the existing “reserves” for certain convertible notes). If the stock price were to drop to $0.001 per share, we would be required to issue approximately an additional 2,100,000,000 shares of our common stock to cover all of our current obligations. The board of directors believes that it is in Minerco's and Minerco's stockholders' best interests to authorize it to increase the availability of additional authorized but unissued capital stock to enable Minerco to promptly take advantage of market conditions and the availability of favorable opportunities without delay and expense associated with holding a special meeting of stockholders and to enable it to meet any obligations it may have to issue shares of common stock.


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[janice shell]

Janice, we have repeatedly explained to the poster that it is not possible for Asher to convert 1 billion shares as there is no record of them having loaned the issuer close to $500 million dollars.

Of course not. Asher actually paid $11,500 for the securities in question, in the most recent agreement.

http://www.sec.gov/Archives/edgar/data/1451514/000135448812006175/mine_ex1040.htm

Typically, Asher lends small amounts of money a little at a time, and converts and sells the stock. Note that Asher may convert at any time it wishes. The only limitation is that it cannot, at any time, own more than 9.999% of the company.

http://www.sec.gov/Archives/edgar/data/1451514/000135448812006175/mine_ex1041.htm

All he needs to free up the stock is an opinion letter from a sleazy attorney. Note that Asher is not required to hold the shares for any specific length of time; he may convert and sell at any time, as long as he uses an appropriate exemption from registration.

This is a lather, rinse, repeat thing. They'll probably do it over and over. And in the end, the stock will be diluted into the billions of shares. Kurt Cramer is well known in the field of toxic financing.

As Sam points out in a subsequent post, the company has a lot of convertible debt, and has already been forced to raise its authorized to undesirable heights.

It's possible the TA sent that information by mistake. But it looks legitimate to me.

[nodummy]

MINE - Asher is converting the Note for well below the market price of the stock. The further the MINE share price falls the more shares Asher gets towards those toxic debts.

Usually their toxic debt Note agreements call for them getting free trading stock at a 50% discount to the average closing price over a certain stretch of days immediately preceding the conversion of debt.

So if MINE is trading at $.002/share, Asher will get their shares at less than $.001/share.

If MINE is trading at $.001/share, Asher will get their shares at less than $.0005/share.

If Mine is trading at $.0001/share, Asher will get their shares at less than $.00005/share.

It is impossible for Asher to lose money because of the unjust, criminal-like discount that they receive.

The last 10Q (under Section 10: subsequent events) MINE tells us that just a 3 week stretch from mid-May 2013 to early-June 2013, MINE has issued over 300,000,000 free trading shares towards toxic debt held by Asher and others.

http://www.sec.gov/Archives/edgar/data/1451514/000135448813003538/mine_10q.htm


On May 16, 2013, the Company issued 49,107,143 common shares pursuant to a convertible promissory note to dated November 1, 2012.

On May 20, 2013, the Company issued 22,392,857 common shares pursuant to a convertible promissory note to dated November 1, 2012.

On May 19, 2013, the Company issued 60,000,000 common shares pursuant to a convertible promissory note dated September 1, 2011.

On May 31, 2013, the Company issued 35,000,000 common shares pursuant to a convertible promissory note dated August 6, 2011.

On June 3, 2013, the Company issued 62,400,000 common shares pursuant to a convertible promissory note dated September 1, 2011.

On June 3, 2013, the Company issued 40,000,000 common shares pursuant to a convertible promissory note dated June 6, 2011.

On June 4, 2013, the Company issued 20,800,000 common shares pursuant to a convertible promissory note dated September 1, 2011.

On June 4, 2013, the Company issued 14,400,000 common shares pursuant to a convertible promissory note dated September 1, 2011.


The 4.9% restriction means nothing when Asher immediately dumps all of the stock into the market then just turns around 2 days later and reloads with a big new chunk of free trading shares.

As samsamsamiam points out in this post, MINE will have to issue upwards of over 2 billion more shares to satisfy existing debts, but as the price keeps dropping that number will just keep getting bigger as it will take more and more shares to satisfy the debt the further the MINE share price falls.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=89506985

MINE also keeps adding new toxic debt Notes. Just during the last two months of May 2013, MINE added another $74,500 in toxic debt Notes.

This is called a debt-dilution debt cycle. The MINE share count will keep growing and the share price will keep falling causing MINE to have to issue more and more shares at lower and lower prices to satisfy old debts while taking out new debts to continue to pay the insiders their salaries.

Only ones that lose are the retail shareholders. MINE will just keep issuing more and more free trading shares towards toxic debts until the stock eventually gets to no bid and has to do a reverse split to keep the dilution scam going. That is all MINE has become is a dilution scam.

Review this post about how a Toxic Debt Note works:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68247638

Some day I expect to see Curt Kramer and Asher Enterprises in some kind of SEC litigation. In the mean time they continue to be one of the top toxic penny stock financiers killing one penny stock after another causing millions of dollars in losses to retail shareholders.

Oh but don't think that MINE is innocent in all of this. True they are too much of a failed company to qualify for financing, but MINE is very complicit in all of this putting out several press releases to sucker in retail investors while they issues millions upon millions of free trading shares to Asher to be dumped on those very same retail investors.

I even see Sierra World Equity Review (Guy Leitch) who has become the laughing stock of the penny stock world pumping MINE. Sierra World Equity has yet to correctly predict one buy out or merger. All they post is nonsense. I consider what they do fraud, but since they admit in their disclosure that all the information in their blog is just for entertainment purposes I guess it is meant as a joke. Sad part is some penny stock investors still fall for the joke.