LOL! You are right - there are many unknowns which
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(Total Views: 310)
Posted On: 12/28/2019 10:18:55 PM
LOL! You are right - there are many unknowns which can possibly jeopardize the $2M net tangible assets needed for the uplist. And you are totally right that we should look at the uplist as a result to positive business practices/progress, not the catalyst for the stock.
A few things I'd like to mention that helps the $2M tangible assets -
1. Last Q net loss was $9.2MM, if you look at Note 10 of the 10Q, the $9.2M includes $3,033,820 increase in derivative liability during the quarter because of Veneto...so, with Veneto violation, GNBT is no longer liable for the derivative liability, so the $9.2M loss should have been $6.2M loss instead.
2. Because of the Veneto violation, $6M liability will be wiped out...the way to wipe out an liability on GNBT's books is to increase other income...so, next 10Q should reflect extra $6M in other income under "change in fair value of derivative liability."
3. The $2.2MM bridge loan - it will show up as cash of $2.2M and Note payable of $2.2M, so the effect on net tangible assets is zero. Also, I don't think it is part of the $40M. Please see notes from 10Q, copied and pasted here -
From 10Q -
On November 25, 2019, the Company entered an Equity Purchase Agreement with an investor to purchase up to $40,00,000 of the Company’s stock at 92% of the market price for the period of five (5) consecutive trading days immediately subject to a put notice on such date on which the Purchase Price is calculated in accordance with the terms and conditions of this Agreement and in which 1,228,501 shares of common stock (“Commitment Shares”) upon signing will be issued to an investor.
On December 5, 2019, we closed under a securities purchase agreement with an investor pursuant to which we sold a convertible note bearing interest at 12% per year in the principal amount of $2,200,000. The purchase price of the note was $2,000,000 and the remaining $200,000 of principal amount represents original issue discount and issued 100,000 shares of common stock for the commitment.
4. Joe mentioned during the 11/29 cc, they are hoping to raise $30M more, but some investors will only invest after the S1 is filed
Copied and pasted from 11/29 cc -
Joe said -
We have definitive documents for $40 million in equity. That will give us enough capital over the next two or three years to build everything we need. We're not going to stop there--the goal is 70, we believe we can get there. I would like to see the share price go up a little bit more. But I will say we will file the S-1 immediately--hopefully, by the end of next week. And then we can add to it if we're able to get one of the other interested funds that requires the S-1 to be filed to invest.
SO, in summary, you are right that there are many unknowns, but maybe $2M net tangible assets is still possible...
Buildit wrote -
Purely for fun, and not trying to be an ass... I’ll continue the speculation
Just a few other items I can think of that we know:
Last Q Op Loss was $4.55MM, Net Loss was $9.2MM, and the $2.5MM bridge loan will come out of the S-1 $ but not show on the last Q liabilities. So that could wipe out the $7.8MM or more.
A few things we don’t know:
Depending how much $ Joe is spending now on attorneys/consultants, etc this Q, that could be a decent number.
How will ALTuCell affect assets and liabilities?
Did any obligations roll up in cost due to the low stock price that is being used to find many things right now?
Again, I think we should look at the uplist as a result to positive business practices/progress, not the catalyst for the stock. That was a nice thought while it lasted, but execution is the key now...
Read More: https://investorshangout.com/post/newpost/622...z69SbLIMvd
A few things I'd like to mention that helps the $2M tangible assets -
1. Last Q net loss was $9.2MM, if you look at Note 10 of the 10Q, the $9.2M includes $3,033,820 increase in derivative liability during the quarter because of Veneto...so, with Veneto violation, GNBT is no longer liable for the derivative liability, so the $9.2M loss should have been $6.2M loss instead.
2. Because of the Veneto violation, $6M liability will be wiped out...the way to wipe out an liability on GNBT's books is to increase other income...so, next 10Q should reflect extra $6M in other income under "change in fair value of derivative liability."
3. The $2.2MM bridge loan - it will show up as cash of $2.2M and Note payable of $2.2M, so the effect on net tangible assets is zero. Also, I don't think it is part of the $40M. Please see notes from 10Q, copied and pasted here -
From 10Q -
On November 25, 2019, the Company entered an Equity Purchase Agreement with an investor to purchase up to $40,00,000 of the Company’s stock at 92% of the market price for the period of five (5) consecutive trading days immediately subject to a put notice on such date on which the Purchase Price is calculated in accordance with the terms and conditions of this Agreement and in which 1,228,501 shares of common stock (“Commitment Shares”) upon signing will be issued to an investor.
On December 5, 2019, we closed under a securities purchase agreement with an investor pursuant to which we sold a convertible note bearing interest at 12% per year in the principal amount of $2,200,000. The purchase price of the note was $2,000,000 and the remaining $200,000 of principal amount represents original issue discount and issued 100,000 shares of common stock for the commitment.
4. Joe mentioned during the 11/29 cc, they are hoping to raise $30M more, but some investors will only invest after the S1 is filed
Copied and pasted from 11/29 cc -
Joe said -
We have definitive documents for $40 million in equity. That will give us enough capital over the next two or three years to build everything we need. We're not going to stop there--the goal is 70, we believe we can get there. I would like to see the share price go up a little bit more. But I will say we will file the S-1 immediately--hopefully, by the end of next week. And then we can add to it if we're able to get one of the other interested funds that requires the S-1 to be filed to invest.
SO, in summary, you are right that there are many unknowns, but maybe $2M net tangible assets is still possible...
Buildit wrote -
Purely for fun, and not trying to be an ass... I’ll continue the speculation
Just a few other items I can think of that we know:
Last Q Op Loss was $4.55MM, Net Loss was $9.2MM, and the $2.5MM bridge loan will come out of the S-1 $ but not show on the last Q liabilities. So that could wipe out the $7.8MM or more.
A few things we don’t know:
Depending how much $ Joe is spending now on attorneys/consultants, etc this Q, that could be a decent number.
How will ALTuCell affect assets and liabilities?
Did any obligations roll up in cost due to the low stock price that is being used to find many things right now?
Again, I think we should look at the uplist as a result to positive business practices/progress, not the catalyst for the stock. That was a nice thought while it lasted, but execution is the key now...
Read More: https://investorshangout.com/post/newpost/622...z69SbLIMvd
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