As per usual reading a prospectus from Generex rem

As per usual reading a prospectus from Generex reminds me of trying to translate a Shakespeare play. It see the words in English but my brain still cant understand what is being said.


There are only 101m outstanding shares (Class A+Class all Class A at this point. There are a total of around 750m Authorized shares ( Approx 500m for Class B and 250m Class A)

Automatic Conversion. On the date that is 18 months from the IPO Date, all of the outstanding shares of Class A Common Stock will be automatically converted into a number of shares of Class B Common Stock equal to the product obtained by multiplying the Conversion Rate on such date by the number of shares of Class A Common Stock outstanding on such date.

“Conversion Rate” means for any date of calculation, the quotient obtained by dividing the Class B Price for such date by the Class A Price for such date.


Equation as follows

Class B pps /Class A pps= Conversion Rate (CR)

New Class B Converted Stock = CR* Outstanding Class A Shares (101m)

i.e. Class B pps $10 Class A pps $1

10/1 = CR= 10

New Class B Stock= 10 *101,000,000= 1B Total outstanding shares after conversion =1,005,000,000

This doesn't seem right to me but unless i interpreted the equation incorrectly it is.

I think this is something of a poison pill. If the prices don't converge there is a threat of serious dilution and delisting of Class B Shares.

I just don't see how Assi's interpretation works. Is this scenario using Assi's assumption GNBT share is reduced from 64m to 6.4m Total float reduced from 105m to 15m. GNBT ownership reduced from 60% to 42%.


Also how in the world are they going to use the very illiquid NUGX shares as a fair conversion factor?

Are NUGX shares the official Class A shares? Will Joe list Class A shares on OTC?

In either case it seems like the price could be easily manipulated by nefarious actors. Especially NUGX with a tiny float.



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