daytrades nov 3 afternoon, page-228

yeah treasurehunter, i got a bit of the one tick pony fever today

CDY - had a better look at La Jolla note which was approved at todays AGM.

I think their first tranche will come in around 1.5c for 13m shares or thereabouts on issue of the note (20% discount to three lowest daily vwap during 21 trading days before conversion date) close to 1.9c * 80% = 1.52c

If the company draw US$200,000 on issue of the note, and a further US$200,000 for the first month, then possibly double to 26m shares, although i'm not sure whether issue of the first note means they can't draw again for another month.

Like Endless said, low price yesterday (suits La Jolla because it gives lower vwap calculation).

Each month, La Jolla will potentially benefit by pushing the share price down for 3 days (meaning a lower vwap and issue of more shares for the same US$200,000), and then pushing it up again to cash in shares for a profit.

One of the directors also took 3.5m shares at 2.5c to satisfy director fees - when notice of AGM released, shares were near 2c.

As i mentioned earlier, expecting a gap up tomorrow - i'll stick my neck out and say it'll close somewhere between 2c and 20c, maybe settle at the halfway mark of the entire move eventually like ADO did.