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Posted On: 03/25/2021 12:11:07 PM
Post# of 22463
"883,783,532 fully dilute shares currently.
After Pasaca's 249,661,287 issuable shares, as well as the 154,228,625 Senior Note (403,889,9112 total), the new increased diluted shares would be 1,287,673,444."
According to the 1/26/21 Pasaca Agreement, the $4.5M Senior Note would be converted into 154,228,625 shares.
However, the 10-K now indicates that as of 3/15/21, Pasaca beneficially owns 249,661,287 shares of common stock issuable upon conversion of their debentures.
So it appears to me that the conversion rate of $0.02917746 in the 1/26/21 Agreement has been adjusted as called for in Exhibit A of the Agreement. I don't see any indication that Pasaca increased their loan above the $4.5 Senior Loan amount.
So I think adding the 249M shares and the 154M shares to the fully diluted shares could be double counting the 154M shares. Just add the new figure of 249M.
"I would still assume the dilutive aspect would be counter-acted by the purchase of Common Stock from Pacaca."
An increase in the Authorized Shares is technically not dilutive, it just allows for more dilution by allowing the company to sell more shares.
Once the A/S is increased, then Pasaca converting the Senior Notes into shares and purchasing more share to achieve 51% ownership will be dilutive to the existing shareholders ownership (if you now own 1%, then you will only own 1/2%), but you will own a company with less debt and more cash ($10.5M) and likely a better chance in the future.
After Pasaca's 249,661,287 issuable shares, as well as the 154,228,625 Senior Note (403,889,9112 total), the new increased diluted shares would be 1,287,673,444."
According to the 1/26/21 Pasaca Agreement, the $4.5M Senior Note would be converted into 154,228,625 shares.
However, the 10-K now indicates that as of 3/15/21, Pasaca beneficially owns 249,661,287 shares of common stock issuable upon conversion of their debentures.
So it appears to me that the conversion rate of $0.02917746 in the 1/26/21 Agreement has been adjusted as called for in Exhibit A of the Agreement. I don't see any indication that Pasaca increased their loan above the $4.5 Senior Loan amount.
So I think adding the 249M shares and the 154M shares to the fully diluted shares could be double counting the 154M shares. Just add the new figure of 249M.
"I would still assume the dilutive aspect would be counter-acted by the purchase of Common Stock from Pacaca."
An increase in the Authorized Shares is technically not dilutive, it just allows for more dilution by allowing the company to sell more shares.
Once the A/S is increased, then Pasaca converting the Senior Notes into shares and purchasing more share to achieve 51% ownership will be dilutive to the existing shareholders ownership (if you now own 1%, then you will only own 1/2%), but you will own a company with less debt and more cash ($10.5M) and likely a better chance in the future.
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