Agreed, and there will of course be some converting by GHS for a considerable period of time, at least until revenues are sizable enough to fund the majority of expansion efforts.
You need to pay attention to the last part of that section which you failed to include:
"Concurrently with its acquisition of the $1,107,606 principal balance due and owing under the First Meadows Note, GHS exchanged that obligation for a Secured Promissory Note in the amount of $1,107,606 issued by us October 6, 2016 (the “GHS Exchange Note”). The GHS Exchange Note is due nine (9) months from the date of issue, bears interest at an annual rate of ten percent (10%), and is secured by all of our assets. In the event of our default, the GHS Exchange Note will bear interest at an annual rate of 20%. 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. Conversions are limited, however, so that no conversion may be made to the extent that, following a conversion, the beneficial ownership of GHS and its affiliates would be more than 4.99% of our outstanding shares of common stock." This limitation will give them serious motivation to "pace" their conversions of the Meadows sum because it only allows that 4.99% max of the OS or about 68 million shares max. Strong buying power can eat that up as we've seen in the past, but then they would be done, and in a lower price range. Yeah, I doubt they'll do anything other than a gradual conversion until that debt is satisfied so they don't lock themselves out of the near term windfall they know is coming.
Anyhow, the "Meadows" terms apply only to that amount of just over 1 mil, and they received access to $12 mil at the much better terms, and with an as-needed draw down clause. Either way you slice it, it amounts to no more than a drop in the ocean to long term investors as compared to the inevitable growth this company will achieve. Flippers, well, they'll still make plenty. Even just doubling or tripling your $$ is nothing to complain about, but long term is where it's really going to pay off. $$RMHB$$
You need to pay attention to the last part of that section which you failed to include:
"Concurrently with its acquisition of the $1,107,606 principal balance due and owing under the First Meadows Note, GHS exchanged that obligation for a Secured Promissory Note in the amount of $1,107,606 issued by us October 6, 2016 (the “GHS Exchange Note”). The GHS Exchange Note is due nine (9) months from the date of issue, bears interest at an annual rate of ten percent (10%), and is secured by all of our assets. In the event of our default, the GHS Exchange Note will bear interest at an annual rate of 20%. The GHS Exchange Note is convertible to our common stock at a thirty-seven and a half percent (37.5%) discount from the lowest trading price for our common stock during the twenty (20) trading days immediately preceding a conversion date. Conversions are limited, however, so that no conversion may be made to the extent that, following a conversion, the beneficial ownership of GHS and its affiliates would be more than 4.99% of our outstanding shares of common stock." This limitation will give them serious motivation to "pace" their conversions of the Meadows sum because it only allows that 4.99% max of the OS or about 68 million shares max. Strong buying power can eat that up as we've seen in the past, but then they would be done, and in a lower price range. Yeah, I doubt they'll do anything other than a gradual conversion until that debt is satisfied so they don't lock themselves out of the near term windfall they know is coming.
Anyhow, the "Meadows" terms apply only to that amount of just over 1 mil, and they received access to $12 mil at the much better terms, and with an as-needed draw down clause. Either way you slice it, it amounts to no more than a drop in the ocean to long term investors as compared to the inevitable growth this company will achieve. Flippers, well, they'll still make plenty. Even just doubling or tripling your $$ is nothing to complain about, but long term is where it's really going to pay off. $$RMHB$$
13
