Comments on Preferred Stock and the Anti-Dilutive Effect
Throughout 2013, management has used Convertible Preferred stock to pay Boost and to generate the capital necessary to fund operations (pay for TUV SUD and Emergo Group, increase inventory, etc).
They choose to use Rule 144 Preferred Offerings (Convertible Preferred) because it has an anti-dilutive effect over the long term.
Pre-CE Mark --> little to no price appreciation yet price remains above a set bottom
$0.002 range is the bottom. The issuing price of the convertible Preferred (in the Q reports) provides the evidence. The company is actually just taking advantage of a bottom caused by the market reaction to the chill (which occurred almost 12 months ago now).
There has been little to no change in PPS when comparing the start of the year and now over 9 months later despite over 300 million shares added to the O/S. A massive level of support has been created over the course of almost 12 months while having an anti-dilutive effect on price.
Throughout the year, the company has rapidly reduced its Preferred stock related debt while keeping Total Liabilities very low. Balance Sheet has remained very healthy.
During the 4Q (again based on the financials), dilution should slow to a trickle.
Post-CE Mark --> The quiet time has allowed longs to be in full control the float , the company now has access to the US, Canadian, and European markets, and large expenses related to the CE Mark are finished.
Boost is also now being retained under a month to month contract (last few months).
GLTA
Comments on Preferred Stock and the Anti-Dilutive Effect
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