Understood. However, at the same time, GHS will be
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Posted On: 03/27/2018 2:31:04 PM
Re: adirondackhi #42580
Understood. However, at the same time, GHS will be considering what will be strategically advantageous for them. Follow me on this excerpt from the Equity Financing Agreement:
"The GHS Exchange Note is convertible to our common stock at a thirty-seven and a half percent (37.5%) discount from the lowest trading price for our common stock during the twenty (20) trading days immediately preceding a conversion date."
Therefore, GHS gets a "free look at trading activity" prior to making a conversion decision.
In that case, the lowest trading price of the past 20 days has been .0128, which would mean they could convert at about .008 per share. If they, for example, converted half of the $1,107,606.00 note, they would acquire 69,225,375 shares that are, at the moment trading at .0168 and have been as high as .018 today. Selling at the HOD would net them $ $1,246,056.75 mitigating the entire risk exposure they have under the Equity Financing agreement. I believe, however that they would stealthily sell into the market incrementally to 1) avoid substantially stalling the run, and 2) take advantage of a possible increase of the pps during the current run. Keep in mind they paid $1 million for the Meadows transfer note.
This move would leave them with a remaining $553,803.00 which they could hold for a possible "lottery run", again with a 20 day "free look" at trading activity prior to conversion.
Undoubtedly, they are paying close attention to unfolding events and and have discerned that it is NOT, at this juncture, in their best interest to wait for repayment of the note at 10% interest.
There surely will be some stalling of a run while they exercise what they may consider to be starategically advantageous. However, if RMHB performs, the the run should continue once GHS has satisfied their profit goals, which could exceed 300% of their transfer note purchase price.
I guess my point is that there is a bit more at play here than the HEMPd launch.
"The GHS Exchange Note is convertible to our common stock at a thirty-seven and a half percent (37.5%) discount from the lowest trading price for our common stock during the twenty (20) trading days immediately preceding a conversion date."
Therefore, GHS gets a "free look at trading activity" prior to making a conversion decision.
In that case, the lowest trading price of the past 20 days has been .0128, which would mean they could convert at about .008 per share. If they, for example, converted half of the $1,107,606.00 note, they would acquire 69,225,375 shares that are, at the moment trading at .0168 and have been as high as .018 today. Selling at the HOD would net them $ $1,246,056.75 mitigating the entire risk exposure they have under the Equity Financing agreement. I believe, however that they would stealthily sell into the market incrementally to 1) avoid substantially stalling the run, and 2) take advantage of a possible increase of the pps during the current run. Keep in mind they paid $1 million for the Meadows transfer note.
This move would leave them with a remaining $553,803.00 which they could hold for a possible "lottery run", again with a 20 day "free look" at trading activity prior to conversion.
Undoubtedly, they are paying close attention to unfolding events and and have discerned that it is NOT, at this juncture, in their best interest to wait for repayment of the note at 10% interest.
There surely will be some stalling of a run while they exercise what they may consider to be starategically advantageous. However, if RMHB performs, the the run should continue once GHS has satisfied their profit goals, which could exceed 300% of their transfer note purchase price.
I guess my point is that there is a bit more at play here than the HEMPd launch.
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