Wow, that's a lot of detail to go through. Just finished looking over the Exhibits - the new notes that you mentioned here.
It's not the only way - we have the equity line. It's actually very good financing for any penny stock, and it's tons better for the company and shareholders to go with "equity" vs "debt" financing. But as Jan keeps underlining, there's no way he's going to touch that anywhere in this price range. (Though, with the new Cielo Mar project and where than is leading us, I wouldn't be surprised if sometime in the near future we hear that we've cancelled the $5M equity line and replaced it with something even better! Just like what happened this week with the AMREFA Series B buyback news.)
But also, I see these as "bridge" financing, where they will be knocked out, without conversions, just as what Jan's been doing all along - with his OWN bridge financing. It would be better if he just made more personal loans (higher dollar amount) from the start, so we could avoid the fairly high payoff percentages. But my guess - he's probably expected that the stock price would be much higher by now, and he'd be able to tap the equity line for the Ag ops expenses. But again, he's stated in PR's, conference call... told me on the phone - until the price is much higher and the volume will support it, he will not tap the equity line. Why - is pretty clear... he's looking after shareholder value, long-term and short-term, and he's doing what's best for all shareholders - which clearly includes himself and his family in a big way.
So here's something (below) that I gleaned from the note agreements, and I just sent Jan an email asking if I'm right. Whether he'll give me the answer or even reply remains to be seen (I usually call before he has a chance to reply, being that I'm too impatient to wait more than a day or two - he always answers or returns calls). I'll put it out here if/when I get an answer.
These new notes are markedly different from the Hopple notes. The Hopple notes included shares/warrants as incentives/inducements, but the interest/conversion terms were fairly good (for convertible notes). By comparison, the new notes include NO shares/warrants as incentives/inducements, but the interest/conversion terms are worse. I think this goes to the "no unnecessary dilution" mantra from Jan's recent note pay downs and PR comments - he cares a lot less about the conversion terms (since there will be no conversion) and more about not issuing any stock.
This also goes to Jan's confidence in 1) the Ag ops, and 2) the Cielo Mar development - the business.
No doubt about it, I will continue buying when I can and holding as much as I can get for the long haul (...but still, will be good to know what Jan has to say about this).
Quote:I read the notes in the 10-Q. Perhaps this is the only way they can raise short term cash at the moment?
It's not the only way - we have the equity line. It's actually very good financing for any penny stock, and it's tons better for the company and shareholders to go with "equity" vs "debt" financing. But as Jan keeps underlining, there's no way he's going to touch that anywhere in this price range. (Though, with the new Cielo Mar project and where than is leading us, I wouldn't be surprised if sometime in the near future we hear that we've cancelled the $5M equity line and replaced it with something even better! Just like what happened this week with the AMREFA Series B buyback news.)
But also, I see these as "bridge" financing, where they will be knocked out, without conversions, just as what Jan's been doing all along - with his OWN bridge financing. It would be better if he just made more personal loans (higher dollar amount) from the start, so we could avoid the fairly high payoff percentages. But my guess - he's probably expected that the stock price would be much higher by now, and he'd be able to tap the equity line for the Ag ops expenses. But again, he's stated in PR's, conference call... told me on the phone - until the price is much higher and the volume will support it, he will not tap the equity line. Why - is pretty clear... he's looking after shareholder value, long-term and short-term, and he's doing what's best for all shareholders - which clearly includes himself and his family in a big way.
So here's something (below) that I gleaned from the note agreements, and I just sent Jan an email asking if I'm right. Whether he'll give me the answer or even reply remains to be seen (I usually call before he has a chance to reply, being that I'm too impatient to wait more than a day or two - he always answers or returns calls). I'll put it out here if/when I get an answer.
These new notes are markedly different from the Hopple notes. The Hopple notes included shares/warrants as incentives/inducements, but the interest/conversion terms were fairly good (for convertible notes). By comparison, the new notes include NO shares/warrants as incentives/inducements, but the interest/conversion terms are worse. I think this goes to the "no unnecessary dilution" mantra from Jan's recent note pay downs and PR comments - he cares a lot less about the conversion terms (since there will be no conversion) and more about not issuing any stock.
This also goes to Jan's confidence in 1) the Ag ops, and 2) the Cielo Mar development - the business.
No doubt about it, I will continue buying when I can and holding as much as I can get for the long haul (...but still, will be good to know what Jan has to say about this).
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