As with most other start ups, they had to secure a
Post# of 75354
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Posted On: 03/26/2019 12:33:58 PM
As with most other start ups, they had to secure a financing arrangement in which they could access capital to fund the growth of the company in short term tranches.
The lender, GHS, would then have a short period of time to sell common shares of RMHB on the open market to retrieve their capital and commission on the loan.
The short period of time until shares had to be liquidated in this manner is because, to protect both parties, GHS is limited in how many shares of our stock they can hold for a specified period.
I'd have to look that up, but basically the terms were good as that type of arrangement goes. The problem is that the delays that management couldn't avoid were helping the shorts/MM's to ratchet the pps lower, thus requiring more and more shares be sold to settle each dip into GHS funds.
Not to be a problem going forward. We're about to blow the doors and the roof off the joint, so you'll be damn happy you held on to your shares. IMHO, this is a great time to add to the pile!
The lender, GHS, would then have a short period of time to sell common shares of RMHB on the open market to retrieve their capital and commission on the loan.
The short period of time until shares had to be liquidated in this manner is because, to protect both parties, GHS is limited in how many shares of our stock they can hold for a specified period.
I'd have to look that up, but basically the terms were good as that type of arrangement goes. The problem is that the delays that management couldn't avoid were helping the shorts/MM's to ratchet the pps lower, thus requiring more and more shares be sold to settle each dip into GHS funds.
Not to be a problem going forward. We're about to blow the doors and the roof off the joint, so you'll be damn happy you held on to your shares. IMHO, this is a great time to add to the pile!
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