TOM there is no doubt that the only reason he went for 15 billion A/Ss because Floyd more than anybody knows that S1 is not going to be approved, in fact, if there is a chance for S1, the moment they hear 15 billion A/Ss they are going to throw the application away, and he knows it, SEC would never put their signature on something fishy like this, and if they would, then Floyd is going to be sent to far away and closed places. But he needs cash, a lot of it, because he can't even pay his current bills, his salary alone is $200Ks. So he is going to go for it-diluting every penny of it. The only other option he had R/S but no way SEC is going to allow him right now. The only option for him is diluting directly to the market or toxic financing.
1. Diluting directly is going to finish up the share price and 0000 is coming
2. Toxic hedge funds with minimum 70% discount because even in September he couldn't issue anything below 30% but average was 50% for all those convertibles. So 13.8 billion, 70% of discount, current share price, maximum you can get $2.5-2.7 million, minimum operating capital to survive this fiscal year. However, the problem with hedge funds now due to the share price and utter lack of interest from retail, they can't convert themselves even at 70% discount, remember what happened last with "record volume"? MMs had to lock the quotation and dump below the bid all common shares they had and retail had no chance to even getting close. I think it is pretty much lights out. I am curious how is he going to do it: cancelling common shares (he can easily can do it), not filing 10K will suspend him from trading (10 days left to find out that), taking it back official private.............I am so curious how he is going to do. IMO
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