The only shares that the $5 Million investor might
Post# of 15624
(Total Views: 342)
Posted On: 02/01/2019 10:45:23 AM
The only shares that the $5 Million investor might have to sell are those received pursuant to the terms in the Dividends and Distributions agreement. In part it states:
Here is the math:
*Each preferred share = $10,000, 500 preferred shares = $5 Mil.
*5% dividend = $500x500=$250,000 per year, or $62,500 every quarter.
*If repayable by shares and let’s say the three lowest price average over an 8 day span is $0.11 x 85% = $0.0935 = 668,449 common shares that would have to be paid every quarter.
An investor has the right to convert dividend payments into cash if they choose to do so by selling the shares in the open market. So I would hesitate by referring to it as dumping. And even if they did sell the number of shares involved is very insignificant.
As for the arbitration agreement with Ziv Turner negotiated in early December, the $750,000 worth of shares comes with a lot of strings attached, and is subject to receiving a withholding tax certificate, which he probably still does not have.
Quote:
In the event the Corporation properly elects to pay a dividend in shares of Common Stock, the number of shares of Common Stock issuable for each Preferred Share shall be equal to: (i) five percent (5%) of the Conversion Value of such Preferred Share divided by (ii) an amount equal to (A) 85% of the quotient determined by dividing (x) the sum of the three (3) lowest Closing Prices of the Common Stock during the period beginning five (5) Trading Days prior to the Dividend Payment Date and ending three (3) Trading Days after the shares of Common Stock are received into Holder’s brokerage account and fully cleared for trading.
Here is the math:
*Each preferred share = $10,000, 500 preferred shares = $5 Mil.
*5% dividend = $500x500=$250,000 per year, or $62,500 every quarter.
*If repayable by shares and let’s say the three lowest price average over an 8 day span is $0.11 x 85% = $0.0935 = 668,449 common shares that would have to be paid every quarter.
An investor has the right to convert dividend payments into cash if they choose to do so by selling the shares in the open market. So I would hesitate by referring to it as dumping. And even if they did sell the number of shares involved is very insignificant.
As for the arbitration agreement with Ziv Turner negotiated in early December, the $750,000 worth of shares comes with a lot of strings attached, and is subject to receiving a withholding tax certificate, which he probably still does not have.
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