(Total Views: 556)
Posted On: 01/29/2020 4:30:37 PM
Post# of 82686
Maybe note conversion before loan is paid off because they get better than double their money converting versus having the loan repaid by SFOR.
Per a recent post citing terms of the loans, it stated the note holders get a 58% to 61% discount.
That means if a note holder gets $3,000 from converting 1,000,000 shares at .003. But that conversion only pays off $1,170 to $1,260 of the loan. The note holders are making more than double their money when they convert.
If the loan gets paid by money from SFOR, all they get is their original loan amount plus accrued interest.
Maybe a note holder knows SFOR is about to be in a position to pay off their loan, and wants double the money by converting before SFOR can repay it.
Just wild speculation on my part, but possibly the cause of the huge increase in dilution all of a sudden.
Per a recent post citing terms of the loans, it stated the note holders get a 58% to 61% discount.
That means if a note holder gets $3,000 from converting 1,000,000 shares at .003. But that conversion only pays off $1,170 to $1,260 of the loan. The note holders are making more than double their money when they convert.
If the loan gets paid by money from SFOR, all they get is their original loan amount plus accrued interest.
Maybe a note holder knows SFOR is about to be in a position to pay off their loan, and wants double the money by converting before SFOR can repay it.
Just wild speculation on my part, but possibly the cause of the huge increase in dilution all of a sudden.
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