Replies to post #10934 on Intellect Neurosciences Inc. (fka ILNS)

[Barney Vissur]

The dilution at ILNS is staggering, although hardly surprising. It looks as though debt holders are converting to common en masse, and the only reasonable explanation for that is obviously to sell their stock.

ILNS will file for bankruptcy protection from creditors in my opinion, and since ILNS reports little or no assets (and since their intellectual properties are tied to other people's patents) it won't matter at all to common stock holders.

That's a contradiction in analysis. In a BK, the debtholders have a preferred right to any potential value (including any potential lawsuit proceeds) in the company over the common stockholders. Historically, convertible debtholders usually convert to common if they see the potential of a spike in price and SEC rules normally require a 6 month holding period before they can sell their common shares. Otherwise, they are better off holding debt so any potential value in the company is theirs and the common shareholders are screwed in a BK. So, strategically, if your thoughts are correct that they are going to file for BK, the convertible debtholders should retain their debt positions, not converting to common.

[itwillgetbetter]

Watch and learn is all I can say.You are correct its staggering that preferred shares are being converted at (.05) cents and the dilution is at least (5 to 10 time less) then if converted at .01 or less.

Once converted at .05 cents (they can not be ratched down) you must not understand cause you stated they could be in prior posts.

Dr.Chain has not divested his holding in ILNS.If anyone divested or reduced there holdings its the Chassman trust.You might look at the 10/15/13 SEC filing 10K item #13 Chassman.

Then you might look at the 10Q 11/19/13 and see the same ongoing.Links provided so no one is mislead by what some don't understand.

http://www.sec.gov/Archives/edgar/data/1337905/000114420413055306/v356503_10k.htm

http://www.sec.gov/Archives/edgar/data/1337905/000114420413063040/v360975_10q.htm

Copied and pasted what you said below.You might read the filings if you don't understand ask me I just might show you the correct answer!




The dilution at ILNS is staggering, although hardly surprising. It looks as though debt holders are converting to common en masse, and the only reasonable explanation for that is obviously to sell their stock.

ILNS will file for bankruptcy protection from creditors in my opinion, and since ILNS reports little or no assets (and since their intellectual properties are tied to other people's patents) it won't matter at all to common stock holders.

I suspect Dr.Chain has divested fully, or nearly fully, from ILNS stock ownership (common, preferred, and any voting shares) and has been divested since summer 2013.