Innovative Food Holdings Inc (IVFH)

[Dickmo]

Had the warrant holder converted those shares, they might have become a major supply of shares as the stock moved up into the upper sixties and low seventies in the future. Now that is unlikely to happen. Sam is crafty enough to have included a lock-up agreement as part of the deal. This will prevent the warrant holder from selling the shares for some period of time.

Assuming that next quarter maintains the positive trends now in place, the anti-dilutive effects of the deal should beneficial to shareholders, at least in the short term.

Those shares represent almost 1% of the fully diluted shares. That's not a lot, but as a voting block, they probably pull more than twice their weight. Many people hold their shares in street name and don't vote. In the event that someone attempts to take the company private, 1% may not be an ace in the hole, but it is a nice piece of the potential voting block. It is a possibility. It's what financial engineers do. So be careful in deciding what is good news and what is not.