Yes to answer your question you did miss a few thi
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(Total Views: 394)
Posted On: 03/05/2019 2:18:13 PM
Re: Letitride1027 #14429
Yes to answer your question you did miss a few things in your "fantasy break down".
The following is straight out of the loan agreement, #11, page 36:
The 47.7 mil shares you are referring to (35.2 minus the warrants) were initially set aside when the agreement was executed. If the share price had not changed, then these number of shares would have been sufficient. However because the share price is drastically lower, the company will have to issue up to potentially 500% more shares to effect the conversion of all the preferred shares.
The agreement goes on to say that if the number of authorized shares, currently at 500 million, is not enough then the company shall take immediate action to do whatever it can to increase the number of authorized shares.
This is why in an earlier post today in a reply to Gary I suggested that the total outstanding shares, upon conversion of all the preferred shares, will very likely be well over 300 million. If the situation were to get worse, even the total authorized shares of 500 million might not be enough. So there would be no more wiggle room for the company to operate.
Are you suggesting the company should just sit still and see what unfolds? I don't think so! You have to remember that the purpose of all this is for the company to raise sufficient funds to further their research and, of course, to get rid of the toxic debt.
The following is straight out of the loan agreement, #11, page 36:
Quote:
(a) Reservation. So long as any Preferred Shares remain outstanding, the Corporation shall at all times reserve at least 500% of the number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all of the Preferred Shares then outstanding (without regard to any limitations on conversions) and the exercise of all of the Warrants then outstanding (without regard to any limitations on exercises)
The 47.7 mil shares you are referring to (35.2 minus the warrants) were initially set aside when the agreement was executed. If the share price had not changed, then these number of shares would have been sufficient. However because the share price is drastically lower, the company will have to issue up to potentially 500% more shares to effect the conversion of all the preferred shares.
The agreement goes on to say that if the number of authorized shares, currently at 500 million, is not enough then the company shall take immediate action to do whatever it can to increase the number of authorized shares.
This is why in an earlier post today in a reply to Gary I suggested that the total outstanding shares, upon conversion of all the preferred shares, will very likely be well over 300 million. If the situation were to get worse, even the total authorized shares of 500 million might not be enough. So there would be no more wiggle room for the company to operate.
Are you suggesting the company should just sit still and see what unfolds? I don't think so! You have to remember that the purpose of all this is for the company to raise sufficient funds to further their research and, of course, to get rid of the toxic debt.
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