Offie,
"There you go again" (to quote one of my favorite Presidents).
You are such a troublemaker. One might come to the conclusion that you posted this in anticipation of people thinking that the company knew all along that they were going to have more dilution. I'll bet the Oilex law firm is going to have to chastise you again for having the temerity to inform the readers of this thread about this.
Let's see if my math is still any good (I surely am happy to have computer to calculate these numbers). Note: all numbers are pre-reverse split. First, let's take the $1,375,000 convertible debenture. I don't know if this one is sold at face value (unlike the previous one that was sold at 80% of face value), but let's assume it was. $1,375,000 converted at 65% of the actual price of the stock equals $2,115,385. Convert that amount at $.045 per share and I come up with 47,008,547 shares. Assuming that the "Holder" actually pays the $1,375,000 up front, the "Holder" makes $745,385 with no risk. That's not bad work, if you can get it.
Doing the same math with the $175,000, I come up with $269,230 net to the "Holder". This converts to 5,982,905 shares. The net profit to the "Holder" is $94,230 assuming no discount on the face value of the debenture.
It appears to me that the "Management of Oilex" has issued instruments with a face value of $1,550,000 and paid $2,384,615 for that money. In addition, the shareholder value will be diluted by a total of at least 52,991,452 shares (on the pre-split basis). This assumes no discount on the face value of the debenture (as the last convertible was discounted).
Any comment, Ajay? I am certain that all of us would like for you or any of the other members of the "Cheerleading Squad" to explain how the company intends to maintain the same number of authorized shares with these two new convertible debentures in the pipeline. While you're at it, you might wish to enlighten the rest of us about the benefits that will accrue to ALL of the shareholders from all of this new paper being issued in what appears to be an extraordinarily expensive manner. I certainly would like to know who is the "foreign" entity that keeps benefiting from these convertible debentures. Would you care to check with your "sources" and tell us that, too? I guess that the "Management of Oilex" forgot to answer that "irrelevant" question that I asked some time ago.
Of course, you could just question my motives and agenda for asking such "irrelevant" questions rather than seek the truth.
To quote a line from one my favorite movies, "The Treasure of the Sierra Madres", "Badges, we don't need no stinkin' badges". Maybe Oilex's motto should be as follows: "Oil, we don't need no stinkin' oil. We got paper".
Prude Dude |
