Playing,
The reg-s works like this- "offshore" investors (oftentimes onshore investors working through offshore accounts- who else would know about
CVIA?) lend the cash to the company,in this case 1,150,000.00 less
placement fees. ( So the net here is 1 million).One third of the
debt is due 6/8, 30 days from now, payable in stock converted at 70%
of the average of the closing bid price 3 days prior to conversion.
So say that average is .01 that means they convert $383333.00 into
stock,roughly 55 million shares at those prices. This will all be
pegged to the reverse which will happen before these conversions take place I suppose so I don't know how to figure the ultimate damage. CVIA gets no more money out of this placement, to answer your other
question. It's important to note that someone has already taken
$150,000.00 off the top of this thing (as they undoubtedly did the last time). So while we've all suffered losses the ones who placed
this offering-which also seems to be floorless- are home thinking of
ways to spend $150,000.00. Gee, is that person soon to be the CEO of
this splendid new,ever-merging corporation?
Again,the worst thing about this,other than the usurious conversion rate, is this floorless aspect. The lower the share price, the more
shares owed to the convertible note holders. But,most likely,private
investors are waiting in the wings with cash waiting to buy up this
conversion as well since they somehow missed buying up the last one.
regards,p.b. |
