"if the remaining 3mil were sold in no more than 6 large blocks of 500k"??
Not how the draw-down works. Read the original 8-K and all exhibits. There's limitations on each draw amount- to draw it down that quickly would 1) CRUSH the share price IMO from massive dilution, meaning each subsequent draw would need enormously more amounts of shares to fill it and 2) Thus, most likely cause so many shares to dilute to put Magna over the 9.99% or whatever it is, ownership.
No way IMO, they draw anywhere near those amounts at one time. They had the Greystone "credit line" of $1 million in place for 24 months, exact same like this one essentially, so this Magna line is nothing new, not in the slightest. And BHRT never drew-down on that Greystone line anywhere near those amounts.
Most recent 10-Q filing, PAGE 13:
"NOTE 5 – STANDBY EQUITY DISTRIBUTION AGREEMENT
On November 2, 2011, the Company and Greystone Capital Partners (“Greystone”) had entered into a Standby Equity Distribution Agreement (the “Agreement”). Pursuant to the Agreement, Greystone had agreed to provide the Company with up to $1.0 million of funding for the 24-month period following the date a registration statement of the Company’s common stock is declared effective by the SEC (the “Equity Line”). The registration statement went effective on February 10, 2012. The Agreement automatically terminated on the first of April, 2014 (the first day of the month next following the second (2nd) anniversary of the Effective Date).
"
10-Q filing prior to that, Q-1 2014:
"NOTE 6 – STANDBY EQUITY DISTRIBUTION AGREEMENT
On November 2, 2011, the Company and Greystone Capital Partners (“Greystone”) entered into a Standby Equity Distribution Agreement (the “Agreement”). Pursuant to the Agreement, Greystone has agreed to provide the Company with up to $1,000,000 of funding for the 24-month period following the date February 10, 2012, the registration statement of the Company’s common stock was declared effective by the SEC (the “Equity Line”).
During this 24-month period, commencing on the date on which the SEC first declared the registration statement effective, the Company may request a draw down under the Equity Line by which the Company would sell shares of its common stock to Greystone, which is obligated to purchase the shares under the Agreement.
For each share of the Company common stock purchased under the Agreement, Greystone will pay eighty percent (80%) of the average of the lowest daily volume weighted average price for five consecutive trading days immediately preceding Advance Notice (the "Valuation Period") commencing the date an Advance Notice (the "Advance Notice") is delivered to Greystone in a manner provided by the Agreement. Subject to certain limitations and floor price reductions, the Company may, at its sole discretion, issue a Put Notice to Greystone and Greystone will then be irrevocably bound to acquire such shares. The registration statement of the Company's common stock pursuant to the Agreement was declared effective on February 10, 2012 and a Post-Effective Amendment was declared effective on May 7, 2013. On December 1, 2012, the parties to the Equity Line agreed that the Purchase Price be adjusted to seventy-five percent (75%) of the lowest daily volume weighted average price of the Common Stock as quoted by Bloomberg, LP, during the five (5) consecutive Trading Days (as such term is defined in the Equity Line) immediately subsequent to the date of the relevant Advance Notice.
During the year ended December 31, 2013, the Company issued an aggregate of 31,052,141 shares of its common stock in exchange for $346,914 draw down on the equity line. During the year ended December 31, 2012, the Company “put” 8,797,859 shares of common stock for a total of $150,000."
During the entire yr, 2013 they only drew-down $346K on that line and just that single draw, cost 31 MILLION shares of dilution in a single pop. Thus, to rapidly draw down $3 million worth, about 9 times that $346K , would dilute out to about maybe 300 MILLION shares minimum, well over 9.99% of the outstanding share count.
Not gonna happen IMO.
