Blue Energy Ord Shs T.BLU

Dilution

[Art365]

Somebody wrote on this board about an eventual devastating dilution resulting from the conversion of convertible notes, etc. The figure mentioned was 700 million shares, taken from the Q3 report. But this was an hypothetic scenario, based on a conversion price of 0,09$ per share. Let's look at the facts:

The 6 million$ convertible notes of the landlord were converted at 0,29$ per share, so 20,6 million shares were issued, rather than 67 million which would have been issued at 0,09. There were also 83 million preferred shares outstanding at the end of Q3 2010. But 14,8 million preferred shares have been converted to 16 million common shares during the previous 12 months, at an effective conversion rate of 0,93$ per share. Finally, at the end of Q3 2010, there were 21 million$ of convertible notes expiring in 2014, 13 million$ expiring in 2026 and 0,5 million$ expiring in 2027.

So the real situation could be much different from this apocalyptic scenario. In fact, the more the shares rise, the more their real value increases.