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Originally posted by bobcat88:
(Q2) Can you clarify something for me. In my case, of having 50mil shares of PAIM. I know I keep 5mil and 45mil I bought out. If I wanted, I can sell at anytime and get $45,000 cash; If I stay, I’m guaranteed $450,000 in 5 years or less. My thinking is, I would have received that amount anyway if the value hit $0 .01. That’s where I’m lost. What if the value hits $0.02, etc. do we lose out on that opportunity?
(A) Sorry for the confusion, but PAIM will only be obligated to pay you $45,000 after 5 years if you do not convert back to common stock at the rate of $0.01. For the $45,000 debenture to become worth $450,000 the stock would have to go to $0 .10 per share. But you would have to first convert your $45,000 debenture to 4,500,000 common shares and sell those shares for $0.10 per share to realize $450,000. In that case your other 5,000,000 shares would be worth $500,000 if you held until they hit $0.10. If the stock goes to $0.01 your 5,000,000 shares will be worth $50,000 and if you cashed in everything at that point you would have $95,000 including converting your debenture to common stock and selling those shares at $0.01. You can not cash in your debenture during the 5 years with our company. But if a market develops for the debentures you may be able to sell the debenture into the market at a discount before maturity, or even a premium if the stock closes above $0.01.

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Posts: 629 | From: Boston | Registered: Jan 2006  |  IP: Logged | 

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Originally posted by tonicma:
Batman, that is what peole said in PAIV look at it now.

100bagger from this point.

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Posts: 491 | Registered: Jun 2006  |  IP: Logged |