7 million banked market will be surprised , page-39

After the current round of conversions of loans into shares there will be around 1165 million shares, plus 115m options at 1.2 cents which expire in 2016.

The current 18 cent options need to be converted next month and clearly will expire worthless.

The real kicker to all this is that there is still a further $3.4m in loans that can be converted into shares. If this amount were converted at 0.0032 cent as some of the recent loan conversions, that would add another 1062m shares (this assumes that for the purposes of the conversion the share price stays at 0.04 cents).

So potentially after all the loan conversions there could be 2227m shares plus another 115m options.

Long term shareholders are to be diluted into worthlessness. New buyers will potentially face further dilution.

So what to do?

Do not buy any shares because they can only get cheaper. 0.001 is a possibility here.

This company needs fantastic news for the share price to gain any traction in the face of the potential dilution.

It appears that the winners will be the lenders who end up owning the company at a very cheap price and have the option to sell their shares in the future. The other winners are the management who continue to get paid, especially the CEO on his $500k pa salary for a massively non-performing company.

loki (I may average down when the share price hits $0.001 so long as the company is meeting its recently announced targets.)