Jack7777 - This was from the most recent PR about
Post# of 75355
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Posted On: 10/19/2017 3:51:52 PM
Jack7777 - This was from the most recent PR about Li and Jerry. (not Gerry).
"Our current management team was led to believe that when the former chairman sold his controlling interest to LSW Holdings, LLC (" LSW" on February 28, 2017 that LSW was contractually obligated to fund the Company to move forward with the Company's expansion plans. That funding did not occur. After the former chairman's departure on June 30, 2017, we obtained an executed copy of his stock purchase agreement and determined that it contained no such requirement."
Great that RMHB has persisted getting the financing with now GHS. That effort alone, and the fact that GHS has the faith that they will be paid back is huge, tells you that they must have a great business turnaround plan.
NOTE ALSO the deal is for up to 12million and they will get it AS THEY need it. GHS will get stock but can sell to cash in at 20% discount. IF RMHB also pursues the aquisition of a pvt company that has revenue and earnings, that is big incentive for GHS to hold off cashing in RMHB stock (at 20%) for a bigger payoff; therefore, the deal would hold the dilution somewhat in check. No doubt they will cash some in as Dadon has previously pointed out.
So be careful jumping to all negative conclusions.
Best of luck to us longs, $$RMHB$$
"Our current management team was led to believe that when the former chairman sold his controlling interest to LSW Holdings, LLC (" LSW" on February 28, 2017 that LSW was contractually obligated to fund the Company to move forward with the Company's expansion plans. That funding did not occur. After the former chairman's departure on June 30, 2017, we obtained an executed copy of his stock purchase agreement and determined that it contained no such requirement."
Great that RMHB has persisted getting the financing with now GHS. That effort alone, and the fact that GHS has the faith that they will be paid back is huge, tells you that they must have a great business turnaround plan.
NOTE ALSO the deal is for up to 12million and they will get it AS THEY need it. GHS will get stock but can sell to cash in at 20% discount. IF RMHB also pursues the aquisition of a pvt company that has revenue and earnings, that is big incentive for GHS to hold off cashing in RMHB stock (at 20%) for a bigger payoff; therefore, the deal would hold the dilution somewhat in check. No doubt they will cash some in as Dadon has previously pointed out.
So be careful jumping to all negative conclusions.
Best of luck to us longs, $$RMHB$$
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