Haven't been active checking in with GNBT for a wh
Post# of 36537
(Total Views: 260)
Posted On: 11/13/2018 1:32:29 PM
Haven't been active checking in with GNBT for a while, with nothing going on. Now we could use digi board back...darn you digi. lol.
Anyway, I'm here now and based on rjs' post, I wish we could get these deals.
Debt Financing
On October 26, 2018, Generex entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to sell and sold its Note Due October 26, 2019 (“Note”) in the principal amount of $682,000. The purchase price of the Note was $550,000 from which Generex was required to pay the $15,000 fee of the investor’s counsel. The remaining $122,000 of principal amount represents original issue discount. The Note does not bear any stated interest in addition to the original issue discount. Generex pays the investors lawyer's fees.
Joseph Moscato, the Company’s President & Chief Executive Officer, has guaranteed the Company’s obligations under the Note. In addition, Mr. Moscato has pledged as collateral for the guaranty 391 shares of the Company’s Series I Convertible Preferred Stock owned by him. Under the terms of the pledge, however, upon conversion of the preferred stock, the investor will be entitled only to the 156,400 shares of common stock into which the preferred shares are currently convertible, and any additional shares issuable due to the effect of the Company’s contemplated stock dividend on the conversion rate of the preferred stock will not be subject to the pledge. Was wondering where Joe got the money to live and get deals. He has 391 shares of preferred that exercise into 156,400 common shares
The Company will become obligated to repay the Note prior to maturity if the Company’s common stock is not listed for trading on a NASDAQ market on or before ninety (90) days after the date of the Note. Company will become obligated to repay the Note prior to maturity upon the occurrence of certain other triggering events, including, breach of the covenants under the Note or Securities Purchase Agreement, breach of certain other contractual obligations, and the occurrence of a change in control of the Company. So we need to be uplisted by 1/19/19. What happens if FINRA puts a delay on it, due to their investigation? Oh, yup, GNBT will have to pay the note with...another note?
If any of these events occur, or if the Company does not pay the principal amount when due, interest will accrue at the rate of 24% per annum on outstanding balance under the Note until paid in full. Late fees will apply on all amounts not paid within five trading days of the payment date. This interest rate on a default is worse than a loan shark.
Anyway, I'm here now and based on rjs' post, I wish we could get these deals.
Debt Financing
On October 26, 2018, Generex entered into a Securities Purchase Agreement with an investor pursuant to which the Company agreed to sell and sold its Note Due October 26, 2019 (“Note”) in the principal amount of $682,000. The purchase price of the Note was $550,000 from which Generex was required to pay the $15,000 fee of the investor’s counsel. The remaining $122,000 of principal amount represents original issue discount. The Note does not bear any stated interest in addition to the original issue discount. Generex pays the investors lawyer's fees.
Joseph Moscato, the Company’s President & Chief Executive Officer, has guaranteed the Company’s obligations under the Note. In addition, Mr. Moscato has pledged as collateral for the guaranty 391 shares of the Company’s Series I Convertible Preferred Stock owned by him. Under the terms of the pledge, however, upon conversion of the preferred stock, the investor will be entitled only to the 156,400 shares of common stock into which the preferred shares are currently convertible, and any additional shares issuable due to the effect of the Company’s contemplated stock dividend on the conversion rate of the preferred stock will not be subject to the pledge. Was wondering where Joe got the money to live and get deals. He has 391 shares of preferred that exercise into 156,400 common shares
The Company will become obligated to repay the Note prior to maturity if the Company’s common stock is not listed for trading on a NASDAQ market on or before ninety (90) days after the date of the Note. Company will become obligated to repay the Note prior to maturity upon the occurrence of certain other triggering events, including, breach of the covenants under the Note or Securities Purchase Agreement, breach of certain other contractual obligations, and the occurrence of a change in control of the Company. So we need to be uplisted by 1/19/19. What happens if FINRA puts a delay on it, due to their investigation? Oh, yup, GNBT will have to pay the note with...another note?
If any of these events occur, or if the Company does not pay the principal amount when due, interest will accrue at the rate of 24% per annum on outstanding balance under the Note until paid in full. Late fees will apply on all amounts not paid within five trading days of the payment date. This interest rate on a default is worse than a loan shark.
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Disclaimer: Of course, all of this is my opinion and you should not make any investment decisions based on my opinion. I have not received any non-public information.
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