Let me clarify it for you. As per the loan agreem

Let me clarify it for you. As per the loan agreement, the preferred shares can begin to be converted after 270 days from the date of the agreement. This is why at the end of January 35 preferred shares were converted. The number of shares that were issued came to an average of less than $.05. The formula for calculating the converted price is very complicated. Basically it's based on the average closing sp over a span of a number of days, then a discount is applied to the average and you get the share price that shares are converted at. I sure wish it had 20 cents per share. In that case the 35 preferred shares worth $350,0000 could have been repaid with only 1,750,000 shares.

This is why the company should have done it's utmost to get it's act together, communicate, and don't leave investors guessing or twisting in the wind.

As for that 47,500,000 shares you are referring to, 12.5 million of those are warrants...the good news with the warrants is that they cannot be exercised for less than 20 cents.

Of course as I said in my previous post the Company has the option to pay cash for the conversion rather than issue cheap shares.