Interesting terms. L2 would stand to get QMC shar
Post# of 22454
(Total Views: 341)
Posted On: 11/22/2017 8:28:17 AM
Interesting terms. L2 would stand to get QMC shares at 35% discount if QMC had defaulted. Upon default, L2 could have converted the balance due with penalties at $0.04875/share, if my calculations are correct based on the lowest price in September ($0.075).
If I read the terms of what is due upon default, it looks like the balance due (including interest) is multipled by 2 and then increased by 140%. Then if you look at the conversion clause, L2 would get a conversion discount of 35%. If my math is correct, if QMC had defaulted, L2 would have gained almost 9 million shares upon conversion. No wonder they were trying to drive down the price in hopes of QMC defaulting. I'd love to have 9 million shares.
1..2 Conversion Price.
(a) Calculation of Conversion Price. The Conversion Price shall be the Variable Conversion Price (as defined herein) (subject, in each case, to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events) (also subject to adjustment as further described herein) . The “Variable Conversion Price” shall mean 65% multiplied by the Market Price (as defined herein) (representing a discount rate of 35%) . “Market Price” means the lowest one (1) Trading Price (as defined below) for the Common Stock during the thirty (30) Trading Day period ending on the last complete Trading Day prior to the Conversion Date.
https://www.sec.gov/Archives/edgar/data/14035...ex10-3.htm
If I read the terms of what is due upon default, it looks like the balance due (including interest) is multipled by 2 and then increased by 140%. Then if you look at the conversion clause, L2 would get a conversion discount of 35%. If my math is correct, if QMC had defaulted, L2 would have gained almost 9 million shares upon conversion. No wonder they were trying to drive down the price in hopes of QMC defaulting. I'd love to have 9 million shares.
1..2 Conversion Price.
(a) Calculation of Conversion Price. The Conversion Price shall be the Variable Conversion Price (as defined herein) (subject, in each case, to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events) (also subject to adjustment as further described herein) . The “Variable Conversion Price” shall mean 65% multiplied by the Market Price (as defined herein) (representing a discount rate of 35%) . “Market Price” means the lowest one (1) Trading Price (as defined below) for the Common Stock during the thirty (30) Trading Day period ending on the last complete Trading Day prior to the Conversion Date.
https://www.sec.gov/Archives/edgar/data/14035...ex10-3.htm
(2)
(0)Quantum Materials Corp. (QTMM) Stock Research Links
Scroll down for more posts ▼