more bonds converted share price dumped, page-4

Good work Trader 8888,

I went back and read the original bond facility information and as far as I can see, either party can call for a bond issue once the shares from the previous bond have been sold into the market. So this is in effect a rolling share issue facility where ACBO get shares at a 10% discount to the market then dump them into the market and do it again. In fact over the term of the agreement ABCO will make several million dollars on a step by step bond issue then sale of the shares. They really have not put much money at risk.

The conversion of the bonds and the recent financial crisis has pushed the share price down from 15 cents to 8 cents and there is no way of stopping this rolling dilution. The deal has become a burden rather than a benefit.

One way to minimise the effect is for the company to make a discovery and get it's share price considerably higher. Even then the issuing of shares for bonds will go on with almost never ending dilution.

It's just that the dilution will be less.

No doubt this deal was necessary to fund ambitious plans but it prevents much of the share price increase with good news. Good for the company to keep going but difficult for the shareholders looking for capital gains.