Quote:During the year ended June 30, 2019, the two preferred stockholders converted 3,891 shares of Series B preferred stock into 39.2 million shares of common stock. With regard to conversions, the Company reversed Series B preferred stock liability relating to the conversion and recorded as Additional paid-in capital at par value. The Company reversed the amount of approximately $3,068,000 based on the proportion of Series B preferred stock converted relative to the original total issued. As of June 30, 2019, 1,096 shares of Series B 5% convertible preferred stock were outstanding.
During the three months ended September 30, 2019, the two preferred stockholders converted 890 shares of Series B preferred stock into 9.0 million shares of common stock. As of September 30, 2019, 1,584 shares of Series B 5% convertible preferred stock were outstanding.
https://www.sec.gov/Archives/edgar/data/13552...ix_10q.htm
Base on the most recent 10-Q (page 28), the MFO converted a total of 48.2M shares (39.2M + 9M) as of 9/30/2019. They are required to file Schedule 13G if they are holding more than 5% of the total OS (212M shares), which equals to 10.6M shares. The fact that no schedule 13G has been filed means they have sold at least 37.6M shares (48.2M - 10.6M). I expected the MFO would not hold long-term, but I was criticized here.
From a logic standpoint, if Leo doesn’t expect the MFO to sell, why force them to do so by limiting them to owning 10% of the total OS in the agreement? I asked that question before but haven’t gotten a logical answer. Those who believe or want you to believe that the current SP is simply a result of shorts selling shares they don’t have and the daily FINRA short sales #s are “proof”, but they can’t deny the fact that the MFO have sold at least 37.6M shares.
My purpose is to show investors where the real selling pressure is coming from. Read the 10-Q. Look at how much cash is on hand and how much are the operating expenses. Ask yourself where the money would come from other than dilutions through the MFO. If you think a B-OM deal will show up at any moment, which I certainly hope so, don’t forget that Leo announced a term sheet months before the B-UP deal was announced.
Good luck to all!
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