Blue Earth, Inc. (NASDAQ:BBLU) Added Convertible Debt in the First Quarter

[[tagnumber 0]] [[tagnumber 1]] [[tagnumber 2]]Shares of Blue Earth, Inc. (NASDAQ:BBLU) are getting unusual trading activity this month. It seems that there are some changes in the ownership of the company taking place, or being about to take place later this year. Its latest filings suggest BBLU is finding it even harder to provide additional cash for its operations.[[tagnumber 1]] [[tagnumber 2]][[tagnumber 5]][[tagnumber 1]] [[tagnumber 2]]Yesterday, BBLU trading volume reached the peak for this month, which sent the share price much higher outside of the trading range. The session closed at $1.21 for a share and that makes a 13.15% gain from the previous close. Total volume for the day exceeded a few times the average and the bullish chart could make BBLU even more attractive for trading in the coming sessions.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]Major technical indicators give strong bullish signals, just breaking above their critical levels, yet massive short selling is probably taking place that will eventually make the share price collapse.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]Earlier this month BBLU released its financial report for the first quarter. According to it, the company‘s sales grew up on a quarter over quarter basis, however, compared to the last quarter of 2014 there is actually a significant pull back. Also, the operating loss is still huge and operating cash flow is still negative.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]Important for long–term shareholders is the change in the structure of the company‘s current liabilities. In the first quarter, BBLU financed its operations mainly by issuing notes for a nominal amount of $10 million ($8 million received after discount) which are convertible into common stocks at a share price of $1. Annual interest is 12% and the note is secured by the new project of the company as well as by its assets.[[tagnumber 20]][[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]A day later, BBLU filed a registration form for over 21 million new shares of its common stock, around half of that amount resulting from the secured convertible notes issued in March. Given that the company lastly had 93.4 million outstanding shares, the extend of shareholder dilution seems considerable.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]]