***ICOA FLOORLESS FUNDAMENTALS (edit)***
The bid at close on 06/11/01 was .0310
Thus the bid average keeps dropping
on release of relisting news, the 10q, deployment
news, et cetera so though
off the pinks, the same old story.....
Per conversion terms set forth in ICOA's
8-K (05/25/01) SEC filings, the conversion share price
is still set at a minimum of 70% of the three lowest
closing bid prices within 60 days commencing with
effective registration for the next $400,000
During the most recent 60 day window the
three closing lowest bid prices
are currently
0.0350....(06/01/01)
0.0350....(06/04/01)
0.0310....(06/11/01)
(Though the bid may have been
lower, before the 8-k came
out and after the PR release
about the "new" financing
was worded in such a way to
confuse the floorless converts
w. the fixed priced warrants)
The average bid is, at least, thus:
0.0336666
70% of the average is the conversion price:
0.023562
The next $400,000 will buy at least:
16,973,462 conversion shares
(prices are good for at least 60 days)
--------------------------------
The current outstanding number of shares:
47,339,124 (as of 06/11/01)
Per the new financing, the OS will rise to
64,312,586 shares
This is before conversion on interest,
and interest penalties
Plus there isn't more guaranteed money to be drawn down
just to be in a position to generate neglible revenues.
Another PP will most likely have to be placed
Now add in amount has been converted
the $129,750 left to convert from Keshet L.P.
the $ 18,000 left to convert from Talbiya
the $ 52,750 left to convert from Nesher
That's another $200,500 in notes used as collateral
to short against which currently converted into
another 8,183,674 shares, with approx 5,000,000
share still left to be converted
Raising the soon to be total OS to at least
69,312,586 shares
Plus this is before another $2.4 mill
in funding is sought.
Remember the financiers make money
on covering their short positions as the price drops,
and on the interest (9%) on their notes until those
notes are converted for shares. Plus those
conversion shares are used to cover their
short positions.
The financiers don't lose any money
The financiers make money as the price drops
Laurus Capital even cleared an easy $40k
in finder fees for "finding" the new financier
Laurus Management (what a joke)
When they convert their notes into shares,
they get more shares due to the conversion
formula based on the average bid price, plus they
got more shares for the accumulated interest.
Every time the closing bid average drops, the financiers
get more shares, and the stock get more and more diluted.
Moreover because of the discounts, the financiers
immediately make 30% or more on their 400k
(120k) for absolutely no time commitment.
Plus just in case this POS were to run
as high as Icoanians dream- say 25 cents- the financier
is covered because Laurus also got 4 mill in
warrants for five years which can be
purchased for 7.2 cents.
FLOORLESS aka "floating" financing stinks
if you're a retail "investor" or sucker
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