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I think it’ll push it without a squeeze. But I never ever rely on short squeezes in the OTC. The thing that helps BZWR is the way it moves on low volume. Like DocSands said, just wait till we get a couple days of 3M+ shares traded. It’ll jump quickly. Gonna be a lot of people wishing they got in below a quarter when it does
In a word: yes.
And that’s why trading a position around the warrants is a wise move when they’re announced.
Since the share price is now mid 3s, there isn’t much margin to be made via selling then rebuying based on warrant price. So it’s not worth that gamble at this point IMO. Now it’s actually the opposite, you buy a trading position and sell at $0.0450 or higher when it approaches the 5 cent mark (S1 warrants) again. And it’ll happen. No need to worry about when, just know it will.
That’ll in turn decrease anybody’s cost per share as well. Good luck to you all. I’m long for 4M+. But will always trade warrant levels when I spot them. One of the best strategies IMO
Classic!
Solid day! Just another positive move forward on the journey
Fantastic action today. And with that volume, should be an indicator for good things to come.
Decent chart setup going on
This is almost too easy. BZWR has been a monster with a lot left to go
Play the filing game. Range wants to be $0.03 to $0.05. The heads up was given when the S1 was released with their $0.05 warrants. Now we have new $0.03 warrants that gave the heads up on this movement towards $0.03.
Eventually those shares will be history and we can move above $0.05 for good. But until then, if you’re a trader, just follow the filings. There’s been at least one other here that’s mentioned this as well. And it’s proven to be a winning strategy. With today basically making it all come full circle.
That poster is implying that the share price will retrace to the warrant price.
It’s interesting that it’s the usual posters. I do more reading of this board than I do actual posting. Mainly because I’m not familiar with this sort of technology from BZWR. But to me it is intriguing that we are moving so well in regards to stock price, but yet there’s not a bunch new faces on the boards. Could be in for a very nice push if a rush of new investors comes our way.
If recent history repeats itself, this is a buying opportunity while CFGN is willing to sell. It’s extremely frustrating in the moment, and I’m not gonna try to predict the exact bottom, but don’t forget what happened last time when CFGN was finished selling their shares. It ran very well, and was accompanied by solid news of company expansion. The long game still looks fine from where I sit.
You’re correct. They took advantage of it. Maybe $90k if memory serves me correct. But I don’t know that number for sure. It’s in a filing somewhere
Wouldn’t the PPP loan adjustment announced this morning benefit Kona?
I haven’t read it in detail, but the news articles discussing it would lead me to believe it’s a benefit to companies like Kona Gold
Glad you are back, Knife. Lot of good posters on the board again with a diverse style of posting.
True. I considered that. But didn’t mention it, as my post are usually lengthy already.
That’s why I made sure to mention how it was just the day prior. Agreement date was 2/10/21. And KGKG stock made the move to $0.05 on 2/9/21.
I also believe the 3 cent warrants were YA’s bonus to sweeten the deal and probably necessary, as mentioned in a previous post. Because I truly do believe the rest of the terms are perfectly fine. And should benefit the company and the shareholders.
It’ll just be this temporary pain until the warrants are converted. Or at least the part of them that YA wants to cash in early to lock in their own profits.
Need to sign Marshawn as the spokesperson. He seems like the type of guy to do off the grid endorsement deals just for fun
Beautiful $0.10 break. Beast mode
Losing 4 cents really hurt. The 3 cent range was weak each way in the past if I recall correctly. So seeing it drop all the way to $0.03 on the number wouldn’t be surprising. Hate knowing that we are in clear jeopardy of giving back the entire run from a couple weeks ago
Reading the posts this morning, most everybody has valid points. I see a middle ground in this discussion. There’s positive and negative.
I didn’t like the warrants priced at $0.03 considering the share price was at $0.05 just prior to the date the 8-k lists as the agreement date. This is what’s allowing for the instant selling of shares without any forewarning to shareholders. Since the 8-K was dropped after hours, and the dilution started instantly the next trading morning. If the warrant price would have been $0.05 or higher, it would have saved face in this regards. But that wasn’t the case.
Besides that, I was fine with everything I read in this latest 8-k. And personally I think it’s a positive development for the company long term. Of course, this is assuming they’ve got plenty of large advancements lined up with this funding. Which I believe is so. The actual $1M in principal balance only has 8% interest and is due in a year. Seems reasonable to me all things considered. Outside of the initial warrants, we may not see any impactful dilution from this 8-k. If kona needs to sell shares to pay it back next year, the price could easily be much higher and fewer shares necessary to dilute at that time (if any —— I’m assuming they’ll need to sell shares though; but if revenue takes off prior to that, even better).
Flexing
I’m not sure what that represents. It’s for a total of $260k between February and March of 2021 for the use of proceeds. I did maybe 5 minutes of internet research to see what it meant, and all I could find was adjusted gross profit. But i don’t see how that makes sense here.
Hopefully somebody else here has an answer for what AGP stands for in this context.
Agree. I thought this funding was a positive overall. Should really allow Kona to ramp it up.
The warrant pricing was the only negative that really stuck out. But that could have been necessary to get YA to agree to the entire package.
Funding. Same note holder as the S1.
Warrants exercisable at $0.03 cost. For total of 50M common shares.
8% interest on the $1M principal balance. Due in 12 months.
Copy/paste what I sent somebody else:
My cliffs:
Issuing $1.5M in convertible debt
It's the same note holder as the S-1 (YA II PN)
Kona already sold and issued the first debt. Which was $900k worth. And also granted the warrants (redeemable for 50M shares).
Exhibit 4.4 states original principal amount of $1M. And Kona owes that to YA II PN by 2/10/22. Plus interest of 8%
Warrants redeemable at $0.03 once this is deemed effective (?) if I read that correct.
There’s more. Like the intellectual property sharing. Lot of documents. I’m taking it as a positive overall.
I believe likewise.
Couple other items that caught my attention and I discussed with a handful of other investors last night (copy/paste from those discussions):
1) I noticed quite a bit about YA II PN getting shared intellectual property. And then most documents have the Kona trademarks at the end listed out in a table.
So I guess YA is getting access to those trademarks? Maybe they're going to promote Kona or something since they have such a large stake in the company now.
2) The fact the shares are priced at $0.03 could be the biggest negative here. I don't mind the funding whatsoever, but don't understand why they didn't adjust the $0.03 number up to $0.05 since the date on the 8-k was after the share price had rose above $0.05
Fair enough. I’m slightly confused how that changes anything about my original post in regards to only 2M taking it down 10%. Clear proof of a lack of bid support above that area. I’m not concerned with how the MMs decide to dance, because their flexibility in dancing also shows a lack of bid support. If retail was strong and/or loading, price wouldn’t be dropping like that off 2M shares.
Sure, anybody can claim there’s bid support at lower levels, but that’s not the point. 2M shares dropping the price that sharply after the 8-k isn’t ideal.
I’ve got the range bottom at $0.0411. Could give it some grace down to $0.04
But if we drop under 4 cents, I’d fully expect the share price to retrace back to the magical $0.03 number that is also the conversion price number from the 8-k last night
Fingers crossed we just double bottomed on that tap of $0.0410. Was previously $0.0411 for the low in this range.
MMs are buyers and sellers. Not sure why somebody would think they are not, if I’m reading your message correctly. That could be a typo in your message
They aren’t a POS company. But they aren’t perfect either.
Dang. Only 2M sold and a 10% drop. Need to see the bid support pick up and hold the price before it gets back into the 3s and gives away the beautiful move we saw over the last 2 weeks
Page 37 of Ex 10.28 has a table showing use of proceeds. For March, it shows $150k to be used for a new product line
They’re connected to S&S, the company we acquired to obtain Lemin.
It shows those 2 companies as the location of S&S collateral/inventory.
Ex 10.30 pg 6
I assume that’s the same spot that you’re pointing out.
I’m a fan of today’s action in Kona. Pretty nice trades. Price held in the range that’s been developed over the last week. No concerns there.
But I’m not a fan of the big board marijuana sector’s finish to the day. I’m playing for a bounce tomorrow sector wide, but not really too confident.
December 11, 2020 outstanding shares = 778,052,603
This was the OS basically the entire 2nd half of 2020. So a good benchmark for the question regarding “how many dilutive shares are left”
As of February 5, 2021 outstanding shares = 809,474,205
So about 31.4M had been added to the OS as of 2 weeks ago. Most likely, these are all from the S1. We only issued ~9M shares for the Lemin acquisition if I read that filing correctly. It’s possible they’re part of that 31M addition to the OS, but I’m not sure those shares were officially issued yet when the numbers updated last time.
Hope that helps.
Solid points
We’ve held alright today. Now wasn’t the time for another move up. I had it marked as tomorrow as the earliest. Need a few markers to catch up yet. Kona seems to be doing alright all things considered.
So true. Once they land kona in those Lemin locations, it’ll get revenue rocking quickly. Just need the first domino to fall, and it’ll get a lot of people believing.
That’s interesting that it doesn’t show on TDA, but shows on ETrade. Not sure what to make of that, because I do believe it’s important to follow the MMs who represent the note holders. So this makes it tougher to follow with the lack of consistency.
I appreciate you posting what ETrade is showing. Following up monthly on share structure changes is the most reliable form. Based on the updated OS on OTCMarkets, I show that we’ve had ~31M of the total S1 shares now released to market. But I enjoy trying to follow daily when possible. At least the L2 movement, to get some sort of idea of current desires by the note holder.
What brokerage do you use? TD Ameritrade doesn’t show CFGN anywhere. Neither ask, nor bid.