Powerdyne International Inc (OTCBB:PWDY) Tries to Break Out of Triple Zeroes

After a couple of months of trading in far thinner volumes, yesterday Powerdyne International Inc (OTCBB:PWDY) managed to shift 364 million shares in a single session yesterday, climbing 60% in the process. The stock that was locked at $0.0005 per share for a good while did not quite manage to go in double zeroes despite this impressive percentile move. What was the reason for the spike in investor interest, though?

The answer to that is obvious – yesterday morning, well before the opening bell, the company announced it managed to clear all of its outstanding convertible debt. This is generally good news, as convertible debt is not something you want to have sticking around.

PWDY‘s last available quarterly report has a ‘Convertible debt’ chapter that is a bit of a hair-raiser. It’s 10 pages long and contains the names of multiple notorious toxic financier parties, including JMJ Financial and LG Capital Funding LLC, as well as some scary past conversion information, including $6.6 thousand of debt being converted into 15,900,000 common shares.

The press release announcing the extinguishing of all convertible debt never mentions how many new shares were issued in the process and how much the company diluted its share structure – a very important consideration for retail shareholders.

As of March 31, 2015 the company had 493 million common shares issued and outstanding. Authorized shares were upped to 2 BILLION with an 8-K filing dating back to January 2015. It’s safe to assume no further increase was needed to accommodate the clearing of all convertible debt, considering there are no new filings showing a bump in the AS, but the exact current number of outstanding shares is still not clear.

Chasing a pink sheet that likely just went through significant dilution up the charts is a risky endeavor and is best left to those with a high risk tolerance.