Sorry, but I can offer you no help. Just a few tho
Post# of 3605
Posted On: 06/20/2016 11:25:50 AM
Re: BurnedTwice #953
Sorry, but I can offer you no help. Just a few thoughts.
The 2 to 12 billion share authorization defies all logic until you consider how many shares MAY be needed to cover Southridge loan conversions. We don't know how much money George borrowed against his $20 million equity purchase agreement with them. He may also have borrowed from others. We also do not know how many of those loans have been converted. But the 2 to 12 billion authorized tells it's own story.
This may come as a shock to many. IMO, gifting of shares to insiders (SEC Form 4) has a thousand times more dilution potential than the convertible loans as they have a one thousand for one conversion rate. To my knowledge, none of the insiders have converted any of their shares. That would have a nuclear effect in destroying the company. IMO, those shares will not be converted unless or until the company is worth billions. But I digress.
The thing to keep in mind is that 12 billion shares have not been issued, only authorized. The potential mass dilution will probably occur in increments, not all at once. George must have had some agreement with Southridge whereby they would not convert all loans at once or Coates would already have bitten the dust.
A diehard believer in CIL might say that production will be "ramped up" at a pace to offset much of the future dilution. That requires more faith in GC than I can muster at this point.
The number of shares authorized to be issued is not the problem. The problem has occurred over time and it has also been the solution to keeping CIL solvent for the last 20 years. Convertible loans. It is a shame to give a company away in order to save it.
As an afterthought, the loan conversions that have taken place to date are already built into the SP. So we are left with another carrot at the end of the stick:
"The Company has a number of options for the production ramp up. Over the next few weeks a decision will be made." Typical GC.
The 2 to 12 billion share authorization defies all logic until you consider how many shares MAY be needed to cover Southridge loan conversions. We don't know how much money George borrowed against his $20 million equity purchase agreement with them. He may also have borrowed from others. We also do not know how many of those loans have been converted. But the 2 to 12 billion authorized tells it's own story.
This may come as a shock to many. IMO, gifting of shares to insiders (SEC Form 4) has a thousand times more dilution potential than the convertible loans as they have a one thousand for one conversion rate. To my knowledge, none of the insiders have converted any of their shares. That would have a nuclear effect in destroying the company. IMO, those shares will not be converted unless or until the company is worth billions. But I digress.
The thing to keep in mind is that 12 billion shares have not been issued, only authorized. The potential mass dilution will probably occur in increments, not all at once. George must have had some agreement with Southridge whereby they would not convert all loans at once or Coates would already have bitten the dust.
A diehard believer in CIL might say that production will be "ramped up" at a pace to offset much of the future dilution. That requires more faith in GC than I can muster at this point.
The number of shares authorized to be issued is not the problem. The problem has occurred over time and it has also been the solution to keeping CIL solvent for the last 20 years. Convertible loans. It is a shame to give a company away in order to save it.
As an afterthought, the loan conversions that have taken place to date are already built into the SP. So we are left with another carrot at the end of the stick:
"The Company has a number of options for the production ramp up. Over the next few weeks a decision will be made." Typical GC.
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