Kurt, It appears that GMGC has redemption rights if the conversion price is below $1.96625. I am making this assumption based on page 19 of the recent S-3 filing in a paragraph entitled "Our Redemption Rights Upon Resets of Conversion Price". I tried to cut and paste it here, but it will only allow me to do it in an e-mail for some reason. I did e-mail the language to Laura Crowley asking her opinion as to the intent of the language and will advise all once I get a reply.
I know we have been told that we will hear information about funding on November 10. Though it is far fetched, what a coup it would be if the funding occurred and was significant enough to handle the future and the past. Very remote, imho.
Also, I guess the recent S-3 validates our opinion of the trading action during, and after, the 10 day reset period as well as the increase in the short positions from Sept. 15 to Oct. 15. It is still a big hurdle to be clear of, now that the Preferreds have accomplished their mission. BTW, not all 26 million shares can be converted at once. No one party, or controlling interest among the Preferreds can own more than 4.99% of the outstanding common stock of GMGC. That is also in the S-3, and HFTP and RGC each have way more than the allowed amount. While they can own about 2 million shares each (5% of 41,000,000 outstanding shares), the S-3 shows rights of 9 million and 7 million shares respectively. That effectively cuts the convertible shares in almost half until they both convert and sell off their first 2 million shares each. They then must convert in approximately 2 million increments thereafter. My numbers are slightly light because the other conversions from Preferreds on the list will push the outstanding shares up a bit higher than the 41,000,000 but my brain is too tired to do the calculations other than the round numbers mentioned above.
So here we are. Show time. No more excuses. Only remaining downer from the financing is the flood of shares which will be supplied into any rally thus holding back the initial advancements. It still comes down to the company delivering. The sooner and bigger it delivers, the sooner we push through these shares.
Maybe I am blinded by my vision (hey I should copywrite that saying), but I still do not believe the company is going to go down the tubes. It sure would be nice to know what deals are being negotiated behind close doors, though.
Best wishes to all believers in the magic.
Seconds Out. |
