Replies to post #64366 on Pervasip Corp (PVSP)

[sgunderbarth]

Interesting timing with the .0017 whack.

[Arthur]

OK. let's take Q3.

During the third quarter of fiscal 2013, a total of $303,880 of outstanding debt principal was converted into 134,568,734 shares of the Company’s common stock.

During the third quarter of fiscal 2013, one holder of convertible debt converted outstanding debt payable of $19,000 for 9,500,000 shares of our common stock.

In June 2013 we issued 26,480,000 shares of the Company’s common stock, valued at $68,848 for payment on an outstanding promissory note of $49,252.
In June 2013 we issued 26,485,000 shares of the Company’s common stock, valued at $68,861 for payment on an outstanding promissory note of $49,262.
In June 2013 we issued 9,500,000 shares of the Company’s common stock, valued at $25,650 for payment on an outstanding promissory note of $19,000.
In July 2013 we issued 29,000,000 shares of the Company’s common stock, valued at $75,400 for payment on an outstanding promissory note of $63,800.
In July 2013 we issued 25,000,000 shares of the Company’s common stock, valued at $77,500 for payment on an outstanding promissory note of $58,250.
In July 2013 we issued 27,603,734 shares of the Company’s common stock, valued at $104,894 for payment on an outstanding promissory note of $64,316.

OK. So the 9.5M share transaction was for ordinary debt (Asher borrowing), and the rest were for "debt principal", i.e Factor Fund debt.

Let's take the last payment. 27.6M shares for $64.3K, so $0.00233 a share.
The share price was $104.9K/27.6M = $0.0038 the day they got their shares, probably July 22.

So, Factor Fund it getting its shares at a lower price than market price.
You can split hairs as you want and not call it a discount. It's a discount. Factor Fund can lock in any low prices in the month, and use it as the basis for conversion. That's for Amended Note 2.
For the New Note, it also receives a 40% discount.