posted
I am so pissed I was absent from this board today. What an opurtunity to act confused and run around in verbal circles, not to mention get in a few cheap shots at PAIM's expense. As usual the smileys were in full force today, very fun. Anyway, what is going to happen to my 12 billion shares? I don't want to sell and wait 5 years to get my, non-interest, money back. I would rather put it in the bank and draw 1.7% yearly.
-------------------- If ignorance is bliss, why aren't more people happy?
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posted
If this plan is workable (and I have never seen this before), this is how it SHOULD AFFECT shareholders, using 10M in a simplified example...
You own 10,000,000 shares of PAIM common stock, purchased at .0001 = $1000.
At pay date... 1) you will retain 1,000,000 freely tradable shares. 2) you will be issued CDs for 9M shares which will have a value of $9000 (9M x .001)payable in 5 years.
The CDs are exercisable at any time DURING the 5 years IF the pps is over .01, effectively adding 1000+% to your $9000 for $90,000.
IMO - Hope they can get this done. My bank doesn't give that kind of return. This is extreme risk for the company, not for the shareholder. OMG, I feel like Cornell Capital!
Rather than edit poorly worded content... The CDs are exercisable at any time DURING the 5 years IF the pps is over .01, effectively adding 1000+% to your $9000 for $90,000....
I'll add this... if PAIM pps moves above .01 during the 5 years, your 9M shares will not be tied up for 5 years. I forgot to factor in peeps that don't seem to mind selling or converting at a loss.
[ May 04, 2006, 18:37: Message edited by: TickTrader ]
>>>PAIM will buy back approximately 27,000,000,000 or 90% of its issued and outstanding common shares using a convertible debenture."
No. They can only buy back with cash.
>>>PAIM will pay par value of $0.001 per share when issuing its convertible debentures.
This is an error. They used the word "pay" whichs means they will give cash. But the "par" value of a stock is archaic and irrelevant. The stock market can trade "shares", "warrants", "options", and "bonds". Does mean that "debentures" are bonds?
>>>The debentures will be payable without interest in 5 years and be convertible back to common at the rate of $0.01 per share at any time before maturity.
So the "debentures" will be bonds with a 0% coupon? Yummy. Then they seem to say that we can sell the "debentures" back to PAIM at any time for 0.01. Since PAIM is .0001 and we get 1 debentures for every PAIM share, this would be very good. But does PAIM have any cash? Doubtful.
As an example, a shareholder owning 1,000,000 common shares will keep 100,000 common shares and receive a debenture with a face value of $900 due and payable in 5 years without interest.
The "common" shares would be reverse shares and would have a new symbol, call it SHAFT1. Fine. We would recieve "1" debenture worth $900 in 5 years. Call the debenture SHAFT2. That would be fine since 1M shares PAIM only cost $100. But the conversion to common makes no sense. Impossible.
Any time during the 5 years, the holder will be entitled to convert the debenture to 90,000 common shares.
Therefore. 1M shares PAIM can be:
1) 100k SHAFT1 reverse shares, value unknown, and 2) 1 deb share SHAFT2
The 1 deb share SHAFT2 can become:
1) $900 cash in 5 years, good luck 2) 90k shares SHAFT1 common, as long as you pay .01 per share which is $900.
So, we can pay $900 to turn 1 share SHAFT2 into 90k SHAFT1 at any time? This is an option. So we are getting an option as well.
>>>Only shareholders of record on June 1st will be entitled to convert 9 out of every 10 common shares on the exchange date of the 15th of June, 2006 for a debenture.
Does this mean it is optional? I doubt it. But if it is optional then lots of PAIM will continue to trade.
SHAFT1 and SHAFT2 will exist in some peoples accounts, but prob. not tradable. The divy shares cannot be traded bcs. they dont have a valid symbol. I dont know why that is, but its the same as restricted.
If the SHAFT1 shares tradable they will be shorted back down to .0001.
Who knows what happens to the divy shares already given.
Why dont these idiots dig for gold? That sounds fun to me.
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posted
As confusing as it looks, it may not be a rip off. Figure if you have 1 mil shares that are reduced to 100,000 shares and a 900 dollar deb. 900 dollars is equal to 900,000 shares x .001. So you are actually gaining. Cuz that 900,000 shares is only worth $90 right now at the present pps.
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posted
I think Max and Tick are smarter than most and might know some of the advanced math needed to understand this. We need something way beyond calculus, maybe String Theory or Chaos.
Still, I suspect that Pearl made some math errors and other errors in her lovely PR. It will never be cleared up.
750M vol. though was a good sign. That might be some naked shorts getting out, covering, or not.
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posted
Mu, accountants have their own math, which is Greek to me. But... I have always wanted to get my knubbies around some of these CDs that the loan sharks get.
This deal really may be possible because the CDs would not be interest-bearing.
Anyone posting on this... please confirm or deny accounting background... I deny.
"As an example, a shareholder owning 1,000,000 common shares will keep 100,000 common shares and receive a debenture with a face value of $900 due and payable in 5 years without interest. Any time during the 5 years, the holder will be entitled to convert the debenture to 90,000 common shares."
So let's say I follow the PR example and buy 1,000,000 common shares today. Some time later I will get to keep 100,000 of my original 1,000,000 common shares and receive a $900 debenture. Let's say a month afterwards, I decide to convert the debenture to 90,000 common shares. So basically I bought 1,000,000 common shares and a few months later I end up with only 190,000 common shares??? How is that a good deal????
posted
I have not been in this thread for a while so if i repeat something don't kill me!! The convertable debenture thing....they are giving stock for enough money to buy back billions of shares did I see? So buying shares back...and replacing them when they have to pay back the convertable with shares. seems odd lol going to take a lot of stocks even at .001 did I see? so how many shares are they really buying back that won't be let back out when time to pay up?
posted
It's like buying a bond that pays 10 times the money you invested in 5 years. But who's to say they won't disappear by then. Too risky. I say sell all you got for as much as you can get and buy back in, on the low, after the R/S dust settles... if you have ANY faith in this mess.
quote:Originally posted by th0th: Something is wrong with the PR:
"As an example, a shareholder owning 1,000,000 common shares will keep 100,000 common shares and receive a debenture with a face value of $900 due and payable in 5 years without interest. Any time during the 5 years, the holder will be entitled to convert the debenture to 90,000 common shares."
So let's say I follow the PR example and buy 1,000,000 common shares today. Some time later I will get to keep 100,000 of my original 1,000,000 common shares and receive a $900 debenture. Let's say a month afterwards, I decide to convert the debenture to 90,000 common shares. So basically I bought 1,000,000 common shares and a few months later I end up with only 190,000 common shares??? How is that a good deal????
quote:Originally posted by letitrideboy: I have not been in this thread for a while so if i repeat something don't kill me!! The convertable debenture thing....they are giving stock for enough money to buy back billions of shares did I see? So buying shares back...and replacing them when they have to pay back the convertable with shares. seems odd lol going to take a lot of stocks even at .001 did I see? so how many shares are they really buying back that won't be let back out when time to pay up?
It's not buying back at all. Typically when a company buys back stock, the stock that they buy back are retired from the market. Let's say PAIM did a true buy back of "approximately 27,000,000,000 or 90% of its issued and outstanding common shares". That means 27 Billion stocks are retired and only 3 Billion stocks left to trade in the open market. That would be good news.
What PAIM is going to do according to their PR, however, is not a true buyback. It is basically a reverse stock split + dilution with the debenture.
"PAIM will pay par value of $0.001 per share when issuing its convertible debentures."
So that means that, like their example, 1,000,000 common shares of PAIM which is currently trading at .0001 will, essentially, be reversed split to 100,000 at .001. Basically a reverse split of 1 for every 10 common shares held.
Here is where the dilution comes in:
"The debentures will be payable without interest in 5 years and be convertible back to common at the rate of $0.01 per share at any time before maturity."
So, according to their example, for every 1,000,000 common shares held, you are entitled to a debenture that can be converted "at any time" to 90,000 common shares.
That means that the current O/S of ~30 Billion common shares will become ~57 Billion common shares(calculated before the "buyback") when everyone "cashes" in their debentures.
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posted
I own PAIM preffered shares and thats all. I don't feel preffered. I feel like if they make bank then they may throw me a bone. Seems like they are just trying to raise money to live the high life until they fold.
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posted
Man the rumour mill is out in full force tonight....Raging Bull and IHUB have Barrick Gold buying PAIM for .10 Per Share. I'm going to bed to dream about all my riches...
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posted
Basically, Elvira/Pearl worked herself into a corner...good fun, though--well, if you're not overextended in it. To those who may be, sincere sympathy: am not making fun.
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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posted
Basically, Elvira/Pearl worked herself into a corner...good fun, though--well, if you're not overextended in it. To those who may be, sincere sympathy: am not making fun.
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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posted
Pearl Asian Mining Industries, Inc. (OTC: PAIM) will buy back approximately 27,000,000,000 or 90% of its issued and outstanding common shares using a convertible debenture.
PAIM will pay par value of $0.001 per share when issuing its convertible debentures. The debentures will be payable without interest in 5 years and be convertible back to common at the rate of $0.01 per share at any time before maturity.
As an example, a shareholder owning 1,000,000 common shares will keep 100,000 common shares and receive a debenture with a face value of $900 due and payable in 5 years without interest. Any time during the 5 years, the holder will be entitled to convert the debenture to 90,000 common shares.
Only shareholders of record on June 1st will be entitled to convert 9 out of every 10 common shares on the exchange date of the 15th of June, 2006 for a debenture.
1,000,000x.001=$1000 100,000x.001=$100+ a option to buy 90,000 shares for $900. So for the most part you are trading $1000 for $100 and a chance to buy stock at 10x the price.
The 900 face value of the debenture is the cost to convert it. PAIM isn't giving you any money for it.
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