A large amount of shares were scheduled to come off restriction today, so I expected a drop. Actually, I expected it to be much worse. Regardless, it is only temporary and those shares will easily be absorbed, especially as we begin to get good news. The question is how many of those holders will truly be continuing to hold their shares long term for much higher pps levels in the future.
To review these numbers, per Mudcat18's prior post:
Many of the restricted shares that are listed on the filing were issued because of debt conversion and debt pay-off. While they were issued on the date stated in the filing, the 12-month restricted period starts not when they are issued, but rather when the debt was originally incurred. Let's actually read the filing and do a little math...
As of Dec. 31, 2013:
O/S = 3,417,417,549
Float = 2,295,374,724
That leaves 1,122,042,825 of the O/S unaccounted for.
In the filing, 804,484,675 were issued between March 2013 and September 2013 for things like services and those are definitely off restricted status in 2014. That said, 203,000,000 belong to Bill and Jeff who can only sell a combined 52,000,000 as insiders.
We are down to 317,558,150 of the O/S unaccounted for.
In the filing, 1,730,744,376 were issued in the same period for debt conversion and debt pay-off. Therefore, 1,413,186,226 of these shares must have made their way into the float and have been absorbed by the market. Given what we have seen in January and February, I am guessing that a good deal of the remaining 317.5 million shares have made there way to Float as well.
Therefore, the question is what is going to happen with the 804.5 million shares that are coming off restricted status. The timeline for these is as follows:
March 83,240,980
April 94,000,000
May 240,243,695
June 0
July 247,000,000
August 140,000,000
In my opinion, those number seems like they will be fairly easily absorbed by the market considering the license will be place by the time the bulk of them come to market.
======================
Also, per Bill:
Creative Edge Nutrition/Bill Chaaban (1/14/14):
"...And for those who worry about the share structure, most shares could have had their share restrictions removed and been sold by now... Some almost a year ago. These people see the bigger picture and most are in for the long haul. The share structure from the financials are already factored in. Restricted certs have a one year hold. And on average a 3 to 6 month deposit time."
To review these numbers, per Mudcat18's prior post:
Many of the restricted shares that are listed on the filing were issued because of debt conversion and debt pay-off. While they were issued on the date stated in the filing, the 12-month restricted period starts not when they are issued, but rather when the debt was originally incurred. Let's actually read the filing and do a little math...
As of Dec. 31, 2013:
O/S = 3,417,417,549
Float = 2,295,374,724
That leaves 1,122,042,825 of the O/S unaccounted for.
In the filing, 804,484,675 were issued between March 2013 and September 2013 for things like services and those are definitely off restricted status in 2014. That said, 203,000,000 belong to Bill and Jeff who can only sell a combined 52,000,000 as insiders.
We are down to 317,558,150 of the O/S unaccounted for.
In the filing, 1,730,744,376 were issued in the same period for debt conversion and debt pay-off. Therefore, 1,413,186,226 of these shares must have made their way into the float and have been absorbed by the market. Given what we have seen in January and February, I am guessing that a good deal of the remaining 317.5 million shares have made there way to Float as well.
Therefore, the question is what is going to happen with the 804.5 million shares that are coming off restricted status. The timeline for these is as follows:
March 83,240,980
April 94,000,000
May 240,243,695
June 0
July 247,000,000
August 140,000,000
In my opinion, those number seems like they will be fairly easily absorbed by the market considering the license will be place by the time the bulk of them come to market.
======================
Also, per Bill:
Creative Edge Nutrition/Bill Chaaban (1/14/14):
"...And for those who worry about the share structure, most shares could have had their share restrictions removed and been sold by now... Some almost a year ago. These people see the bigger picture and most are in for the long haul. The share structure from the financials are already factored in. Restricted certs have a one year hold. And on average a 3 to 6 month deposit time."
