Ok after a bit have a better handle on this : F

Ok after a bit have a better handle on this :

First off I think this past week has shown to all they were
busy getting us to a point where we now have financing.
Bashers here kept saying couldn't be done till Nov. Same ones who posted
we only had 285 investors..

We got the (everyone knew) crap 10k then the 8k re: Meadows
and now the financing news. there was no fluff posts they coulda
put out to ally fear.

We're now a new Co on a fresh start and appears so after cleaning up
messes left by the prior - we all know who -

As stated prior I'm off in 2 weeks to Dallas with trade pals and plan on
an evening out with Co and get a better handle on things along with
Blues Good Eats and Nascar.

Just off chat with fellow lawyer investor NY looking at todays 8K here's highlights of our chat:

Hope this helps others we are gonna see things thru

Rock on RMHB
Dadon_111

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It's like a bank line of credit with stock. first 250K @10% now to keep lights on. convertible into shares after 180 days if the registration statement is effective. Second another 250K on same terms when file the registration statement in 30 days so $500,000 cash convertible notes to RMHB

The put is RMHB has the right to call down on the $12,000,000 financing over the next 2 years

Each "put" or time they draw on the financing, they issues shares 20% below lowest trade price for prior 10 trading days in amount of the put cash request (will vary depending on company needs).

So simply put GHS gets shares at 20% discount each time RMHB draws on the financing

However! if stock falls lower during 10 days following the put and GHS has not sold, RMHB has to issue more shares to make up the difference. Thus GHS is protected from almost all downside

Like most convertible's we've experienced ...

They do have an interest in knocking stock down prior to a put issuance as their price is 20% BELOW the lowest 'trading' price for stock over 10 day period prior to the 'put' so stock dips hard one day for a single trade down like 20% over 10 days -- GHS gets shares 20% BELOW that lowest traded blip but that would be short term knocks on the stock not years long hold down

and like said if stock continues lower after a 10 day put period once GHS has shares and has not sold, RMHB issues more shares to make up the difference (ie what GHS lost in market value on put shares issued for specific put)

Well RMHB has the right to draw down up to $12,000,000 over 2 years

at 20% discount to lowest tick
but RMHB has right to cash for 2 yrs

Its a 'rolling' dilution or open-ended. similar S-3 shelf registration big companies file so can issue stock and raise cash at any time open ended up to 12mm over 2 yrs

So It's our job is to make sure et al spend that money wisely

But GHS will be dumping shares to get their cash at least in the beginning I suspect - or a portion of each put and tuck away some etc. but If RMHB heads in right direction then I'm sure they hold for the big payoff. It's a protected option for GHS