GSMI - looks really bad at any price.
March 31 SOS 5,531,705
June 30 SOS 10,102,323
Aug 15 SOS 12,555,071
Series C convertible preferred shares 14.5 of them converted to 3,462,463
Not sure what the conversion rate is based on but that means the other 30.5 outstanding would add another 7,283,111 (or a lot more if it is based on the closing price)
No wait, decided to investigate a little more...
Man this is really good, here's the scam
So the company issued 45 Series C preferred (SCP) for 4.5 million dollars. After all is said and done it added 2,423,000 to book value (the other 2,077,000 disappears into space)
Now those SCP's convert to shares at a 25% discount to market price prior to March 31, 1998, and after that the discount increases 2%/month to max 35%
So at todays price, the remaining 30.5 can convert to 50,051,282 shares.
So with only 40 million authorized, you bet they need to do a reverse split.
Head for the hills boys |
