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Posted On: 06/04/2015 7:00:37 AM
Post# of 1241
Posted By: dano9008
Re: junebug #626
DIRV has got a lot of convertible debt and some of that is incentivized to convert now and they don't have and aren't likely to have any operational income soon to turn the tide. The burn rate was 1.4M in 2014 and 128K in the first quarter, so one should expect more convertible debt. They did a 1 for 30 share R/S in March. The rallies it has had recently are probably best explained by the post R/S low float making rallies (probably news driven - I haven't bothered to look at the news on it) more likely.

Some of the debt converts at .0001, some at other prices below .001, and some at .0025. Those creditors would be wise to convert now. There is a history of debt being renegotiated to dramatically harsher terms, and so, the debt that doesn't look so bad might turn bad through such a rewrite. Then there is the convertible debt that converts as a functional of the trading range, I would think they would want a stable trading range and volume. So, when the trading range seems to stabilize, they seem to become incentivized to convert. I think it returns to the trips.

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