convertible notes

Another factor I had overlooked regarding NFL was the issue of Convertible Notes in 2006.

300,000 were issued at $100 each. At the time of the float, these were converted into approximately 111 shares each to be issued at the time of the float.

Now about 33 million extra shares are issued at the time of the float at an equivalent price of 90 cents each.

I believe that the holders of these shares would be more likely to sell than the people who bought into the float because for almost four months after the date of the float they could still be sold at a profit ... and back in December we were wondering why so many people sold their shares the day after the float!

There is also the comment "As a condition of the Converting Note the noteholders must also subscribe for, or procure subscription of an equivalent value of Shares based on the Offer Price". I'm not sure if this means that the holders of the convertible notes bought another 20 million shares in the float, or outside of the float.