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No you buy the warrants but when it is time to exercise the warrants into common shares you still have to pay the strike price.
Here is a real life example for edification:
FORW/Sharp bought 125 Million warrants for $200,000 the strike price is $0.20. For Sharp to exercise the warrants he would have to pay $25 million.
But the HUMBL price went below $0.20 and now the warrants are worthless.
And Sharp can't sell until the stock is registered with the SEC - DRNK isn't a SEC filer so no one can sell the warrants unless SNNC files a S-1.
Sharp spent $2 million to exercise 10 Million warrants and now they are worthless.
IG
A warrant is similar to an option, giving the holder the right but not the obligation to buy an underlying security at a certain price, quantity, and future time.
Warrants can offer some protection during a bear market, where, as the price of underlying shares begins to drop, the relatively lower-priced warrant may not realize as much loss as the actual share price.
https://www.investopedia.com/trading/warrants-risky-but-high-return-investment-tool/
Excellent, straight forward, non-emotional report. Thank you.
I feel like they are waiting until after the acquisition into SNNC to announce the new products.
Those explanations from the angry (hair on fire) bystander, are about 50% true, now let's walk through this transaction and clear up any misunderstandings.
1.) DRNK acquires Smog Armor for Pref Shares valuation TBD, no current dilution.
Smog Armor-has a patent pending carbon eating paint, could be huge, not
presently, the management team is very well positioned for the huge growth
that is anticipated with proper marketing (cost) . What did they have before, a
five-hour energy knock off not much revenue, replacing it with state of the art
paint that eats carbon with no competition, I personally prefer the paint deal,
tons of upside in the green space, etc..
2.) DRNK sells IP, Brands and formulas to SNNC, which has wellness brands.
DRNK shareholders will receive a valuation TBD upon definitive agreement
(we don't know yet, don't get your panties in a wad)
Will include a revenue share from the After Shot sales % TBD ( we don't know
yet)
Will receive a stock purchase warrant to purchase shares of SNNC at a
predetermined price, which they say will be at a discount to the current stock
price (example: wts exercise price is .02 the current stock price is .05, if you
had 1,000 wts it would cost $20 to get 1,000 shares of common stock, which
has a current value of $50 you are net $30 in the green)
Number of Warrants to be issued TBD
SNNC will file an S-1 to register the shares for the transaction to make them
free trading ( suggestion get a cusip for the Wts and have them trade as
SNNCW)
NO debt is moving from one Company to the other, don't listen to the noise
makers, just sayin
I'm making sure I hold millions of shares on July 29 2022....the warrant deal might turn out great dep. on the terms/price
https://www.allpennystocks.com/specialreportsus/2960/this-blockbuster-three-way-microcap-deal-is-getting-investors-excited?utm_source=advfn
You were correct with your explanation.
"This is an absolute win-win for all parties. The NOHO brands will now be much stronger under the Sibannac umbrella and the NOHO shareholders are getting tremendous value in return with Smog Armor bringing in an ultra-talented executive team and a terrific product line with its patented green tech paint,” said Mersky.
Hmmm that’s explained different than what I was seeing and understanding
Recent article I saw posted below:
https://www.allpennystocks.com/specialreportsus/2960/this-blockbuster-three-way-microcap-deal-is-getting-investors-excited?utm_source=advfn
If it works that way I would keep my DRNK shares and not do the warrants. I agree that green energy would be a better bet. Thanks.
$DRNK...Companies that need to raise additional capital can do so by issuing additional shares of stock. However, these additional shares will dilute the value of existing shares, which can be a concern for shareholders. Some companies, therefore, choose to issue rights or warrants as an alternative means of generating capital. These instruments give shareholders the preemptive right to purchase additional shares of stock directly from the company, typically at a discounted price.
https://www.investopedia.com/articles/investing/062713/investing-stock-rights-and-warrants.asp
I see it like SNNC gets DRNK. DRNK becomes smog armor. In super simple terms
No I see smog armor coming in after snnc acquires drnks assets.
It is my understanding that NOHO (DRNK) may purchase Smog Armor Inc. After that Sibanna will acquire all of NOHO's assets. Therefore, that would leave nothing of value owned by NOHO. The green energy company would be owned by SNNC. Is that how you see it?
It looks like Drnk is changing from a beverage company to a green energy company. I don’t know about you but I imagine green energy is a better play in the long run.
Everything is being transferred out of DRNK. Hard to understand how DRNK will have any value. It seems all the future effort and value will be with SNNC.
Current assets are transferring. The newly acquired assets are not. Shares will still be operational.
Why would anyone keep their shares of DRNK when everything is transferred to SNNC? DRNK would not be operational. Seems like we are forced to transfer our shares to warrants and purchase SNNC stock. Guess we are "painted" into a Smog Armor corner. Seems like Mersky to going to hustle the DRNK shareholders that loyally supported his ventures.
That isn't true - warrants aren't like dividends - you have to buy warrants. You don't buy dividends.
"The warrants are like a dividend. Your not losing shares of DRNK. They will still be there the warrants are the option to buy for a discount. You will still have your Drnk shares whether you buy the discounted warrants or not. Your shares of DRNK shouldn’t change."
Warrants cause dilution and if the price drops below the target price of the warrants then they are worthless and you have lost what you paid for them.
You will own the warrants and hope Mersky pumps the price but their is a time limit on the warrants.
A real company gives dividends because they have performed very well - warrants on the OTC is to enrich the insiders.
IG
And where are you getting the information that the warrants will not be exercisable for a year?
The shares are close to being worthless now - if SNNC acquires the assets and IP of DRNK - so DRNK keeps the debt and the shares will be worthless.
IG
Yes, DRNK will only be left with the debt as SNNC.
"This transaction will result in bringing all NOHO brands and products into Sibannac"
Mersky is big talk but always fails to Deliver.
So DRNK will have to pay for warrants that can't be exercised for a year and SNNC only had $2000 in revenue in the last Q.
IG
In the last SNNC financials the revenue was a paltry $2000 but the funniest part is the COGS were greater than the revenue.
So SNNC isn't doing very well with a Net Loss of $152,797 for the Quarter.
And the coup de grâce was the following:
NOHO, Inc. entered into a letter of intent to acquire Smog Armor, Inc., a special purpose acquisition company formed to facilitate the transfer of Smog Armor’s assets from Delaware-based Creative Carbon Solutions, Inc.. NOHO will acquire Smog Armor with convertible preferred stock which will not result in any immediate common stock dilution.
And don't forget you have to pay for the warrants.
IG
Oh wow, another infamous Letter of Intent - more meaningless pumping.
And only OTC novice investors will fall for convertible Preferred Shares not causing immediate dilution - the reason is that the convertible Preferred shares aren't immediately convertible.
Warrants convert to Common shares when a warrant is exercised which mean there is dilution.
Warrants cause dilution because a company is obligated to issue new stock when a warrant is exercised.
This is just more pumping from Mersky - and warrants are very dangerous - there will be a one year time period to exercise the warrants - but you still have to pay for the warrants so it is cash out of your pocket into the pocket of Mersky.
I hope no one falls for another empty promise from Mersky.
IG
First, this is just more Mersky pumping BS.
I follow one company when another company spent $250,000 on warrants - the target price was $0.20 - meaning you had to pay $0.20 per warrant and you couldn't exercise the warrants for one year.
After a year the price was below $0.20 therefore the warrants are now worthless.
If you don't understand anything about warrants you should at least know about Mersky and everything he does is about self enrichment.
IG
Drnk will be massive!!
$$DRNK$$
So basically Drnk shares will have no value other than some paint company that has absolutely no revenue after being in business for three years, Mersky also now wants Drnk investors to buy Snnc shares while calling them Warrants.
They are acquiring the assets and intellectual property of DRNK. They are not acquiring the shares of DRNK, your shares will stay the same
Sibannac will aquire Drnk, so what happens to investors shares of Drnk, forget Warrants.
Smog Armor Paint
https://www.smogarmor.com/
Companies that need to raise additional capital can do so by issuing additional shares of stock. However, these additional shares will dilute the value of existing shares, which can be a concern for shareholders. Some companies, therefore, choose to issue rights or warrants as an alternative means of generating capital. These instruments give shareholders the preemptive right to purchase additional shares of stock directly from the company, typically at a discounted price.
https://www.investopedia.com/articles/investing/062713/investing-stock-rights-and-warrants.asp
Ok cool. Thanks for explaining. I already own a decent amount of the other company. This sounds really positive to me on all fronts. The more I read on the paint thing the more I like the sounds of it. Being in so early of something that has potential to be absolutely massive
The warrants are like a dividend. Your not losing shares of DRNK. They will still be there the warrants are the option to buy for a discount. You will still have your Drnk shares whether you buy the discounted warrants or not. Your shares of DRNK shouldn’t change.
And can we choose not to use the exchange of shares and keep DRNK also? If we wanted to stay in with the paint company?
It’s my understanding based off of these PRs that holders of DRNK will be receiving shares of SNNC at a discounted market price in the form of a warrant. What isn’t known at this time is the conversion rate and price of the warrants but an example of what sounds like will happen is as follows. (Numbers used from here on out are made up)
Example: conversion rate 1 share of SNNC for every 1000 shares of DRNK.
So if I hold 5000 shares of DRNK I will receive the option to buy 5 shares of SNNC at a discounted price. If the market value of SNNC is .25 a share I can buy 5 shares at .15 and then in turn exercise the warrant for an immediate .10 a share profit.
Again all numbers are made up until they disclose what the numbers are.
Definitely can be confusing reading that. I’m hopeful we get more details on the upcoming investor call
Does anyone understand the below statement fully?
For example, if someone currently owns 40 Million shares of DRNK. Sinannac is going to register the warrants so that shareholder can convert them into freely tradable shares. After that the shareholder exercising the warrants must pay Sibannac the cash value of those warrants. Seems like we would be paying for the shares twice. When we initially purchased the shares and now to convert the to Sibannac pay again? Therefore, it seems like our current shares have no value after the merger if we essentially need to buy them again.
"Sibannac intends to register the warrants so that NOHO shareholders can convert them into freely tradable shares. Sibannac will price the Warrants at a discount to the market at the time of distribution, to the benefit of NOHO shareholders. Any shareholder exercising the warrants must pay Sibannac the cash value of the warrants, which will be recognized as income of the Company."
Sibannac will price the Warrants at a discount to the market at the time of distribution, to the benefit of NOHO shareholders. Any shareholder exercising the warrants must pay Sibannac the cash value of the warrants, which will be recognized as income of the Company.
All three parts of the transaction are expected to close within 24 hours, expected within the next 30 days. Sibannac and New NOHO Management to Discuss Continued Relationship for NOHO Revenue Sharing After the shot. Specific terms will be disclosed when the definitive agreements are signed.
https://eigenwijze.org/sibannac-to-acquire-the-assets-of-the-noho-brand-in-a-successful-three-way-agreement/
There was already a video call last June with numberous hot air balloons released which just seemed to float away and pop somewhere in another galaxy, so now to mark the one year anniversary of another hot air release to the date Soon, June will mark one year of Nothing..
NOHO, Inc. will be conducting a shareholder video call which will be open to the public to answer questions about the proposed Smog Armor, Inc. acquisition. The call will be scheduled within the next 2 weeks and registration information will be provided. https://finance.yahoo.com/news/noho-inc-hold-shareholder-investor-123000944.html
Please Mr Shillman, name one thing that Mersky has delivered, really funny that the reason for long delay according to you is this paint BS yet he continues to lead investors on and on with "Coming Soon" only to put out another misleading Tweet as the months roll by. Yes, as you say very repetitive and unproductive to continue to repeat same bullshit over and over and never produce one thing. Same One Shot can pictured for last ten years...Really?
Your posts are getting quite repetitive and unproductive. Isn’t it obvious now why there has been such a delay in all of this. They have been in talks with this paint company since last year and probably have held off on rollout of everything until all IP is transferred over to the parent company. Which in my opinion isn’t a bad thing. They have had so much time to dial in the products and productions of new products. On top of building an amazing team where everyone is fully up to speed. I see this as great news for SN*C and for DRNK has massive potential now with a new company taking over this ticker.
Investor Call Epic just like the Major News on some ridiculous paint nonsense and No New Nano Products, Advertising,Warrants, But Still Coming Soon.What a Joke...
June makes one year since webcast, where's New Products, Advertising, Warrants, and now this is Mersky's Green #nergy, some stupid ass paint with no sales for three years and one employee, time for another BS phone call to BS some more.
Investor Call coming should be epic
https://www.otcmarkets.com/stock/DRNK/news/NOHO-Inc-to-Hold-Shareholder-and-Investor-Call-on-Smog-ArmorR-Inc-Acquisition?id=357253
Mersky managed to get Yield Sign which he said was a mistake, funny but it's still there. Where's that great marketing team?
The NOHO NEW NANO TECH PRODUCTS WILL STILL BE ROLLING OUT SOON, KUNE WILL BE ONE YEAR SINCE ANNOUNCED.
It takes about 14 weeks for paint to dry and not be toxic so I guess Starbucks is now going to repaint all their stores with Smog paint, this is Mersky's idea for the Green Energy BS.
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