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You do realize I was one of the 2 individuals who connected kona with the AB distributor, right? We had introduced them one year prior to the Farm Bill being signed. Then we stayed in touch and kept at it leading up to, during, and after the signing.
Your questions you asked were not on the right path. I’m aware on why things happened the way they did with the local AB distributor, and no, I do not have to disclose anything if I do not want to.
And it’s not really a secret. Just to be clear. I’m not holding back anything surprising or special.
I’d answer your questions based on info I’ve received, but there are things I won’t be disclosing on this board. Surprisingly, I don’t share everything here.
I actually met Chad once, after he came to the area to meet the AB team face to face. Disappointing to see him leave after everything positive he said about the future of Kona. I had a suspicion that it may not last though, based on the way things fell by the wayside with Kona’s presence with the local AB distributors. Kona could have really took off in this area; I know AB was very optimistic.
Can we get a moderator to clean up the stickied messages that show up on the mobile board? They’re getting pretty outdated. And there’s plenty of recent material now with the S1 and Clark’s tweets that would be more relevant, imo.
Had a friend point something out to me:
OTC Markets lists 778,052,603 shares outstanding as of 12/11/20
The prospectus grants 105,947,397 shares to Yorkville issued upon conversions of the secured convertible debt. (This does not count the Warrants).
On page 5 of the prospectus, it states that there were 786,308,041 shares outstanding prior to the prospectus, which is dated 12/31/20.
It also states on page 5, under note (2), “97,691,959 shares of our Common Stock issuable upon conversions of the Debentures”.
786,308,041 - 778,052,603 = 8,255,438
105,947,397 - 97,691,959 = 8,255,438
So it’s proof that they’ve already issued shares to Yorkville. Which we were already assuming such based on pretty clear evidence I’ve been passing along to this board (CFGN presence, block trades, t-trades, etc).
Now here’s where we are at on the “how many shares have been sold/placed from CFGN”:
Our estimate was anywhere from 8-23M this week. 8M was the low end because it was the the sum of what we call obvious correlating transactions. The higher range was in case they were also responsible for a high percentage of overall volume.
If our 8M low range is accurate, and YA still only has the 8,255,438M shares converted yet, then this would fully explain why they backed off to $0.10 Friday afternoon.
Next question would be “why did they only have ~8M of the 105M converted so far”
My GUESS is that the $100k loan advancement from the S1 issued on 11/30/20 came with this conversion of shares. This is a complete guess, but would make sense. Because 8M seems too low if it is supposed to represent the first allotment from the SPA on 5/14/20.
Anyhow, long story short, we’re thinking it’s possible YAII (CFGN MM on L2) may have already liquidated close to 100% of their already converted shares. Which would also help explain why RC didn’t feel the urge to send any PRs this week outside the S1 update. Because they knew it wasn’t necessary to drum up volume for just ~8M worth of shares looking to be moved.
Just a little bit of excitement based on math and whatnot. Enjoy!
Would be nice to see a surprise afternoon PR now
Won’t happen any time soon. Until they release something legitimate as their “big announcements” that Clark promised, we will be at the mercy of CFGN. Retail won’t run them off unless it’s a lot of volume.
You can probably throw charts out the window until we get CFGN moved on or
Up, which will happen eventually. But could be dependent on whatever the big announcements are that have been teased by the CEO.
I placed a 3M sale earlier this week just so I could confirm suspicions about CFGN. Less than 5 seconds after I placed my 3M sale, they lowered to my level. So I removed the 3M block. Didn’t have any intent of selling shares, but wanted to get as much confirmation on CFGN’s motives as possible.
That’s the way I take it also
I think that’s the pivotal part of the entire scenario for the shareholders. As long as these transactions are managed as such throughout, it’s healthy dilution.
It’s nice they aren’t getting undercut by retail much today. Granted, I haven’t been able to follow as closely as I’d like. But every little bit helps. Still have to stay honest and acknowledge the elephant in the room tho, even as much as it hurts
CFGN throws a wrench in the ask now. As long as they’re selling with the deceitful 10k lot showing, it’s impossible to gauge the strength or weakness, at least from my viewpoint.
The first set of shares was issued in May 2020, when the SPA was first released. I believe it was May 14th if memory serves correct.
I think it’s wise to to track these t-trades or block trades. That’s ~4M total now this week (1 transaction posted each day). This will help if anybody is trying to calculate what YA might have remaining to sell. Obviously not a clear cut answer, because there’s other transactions that add up as well. Especially the ones from Monday.
It’s been a while since we’ve had true dilution from note holders. It’s probably been years.
But if you’re speaking of the talks of GTSM that started once the SPA was signed, that was other concerns. Not dilution. That was a conversation a few of us had trying to determine why their presence coordinated with the SPA, and why they were mainly on the ask and seldom on the bid. The OS never raised during this time, and the concern of actual dilution was never much of a concern, it was simply trying to determine who/what those shares represented. Because they were clearly a factor in driving the price down for those 7 months in 2020.
But maybe you’re speaking on some other conversation that I missed out on, or am not recalling.
“that consideration the shares trading now are all dumps from the S1 deals...is a leap (IMHO)...we have seen huge volume before and turns out minimal changes...I do expect some...but would consider that any who made deals for shares might have confidence in future...want more % then to dump at first opportunity”
Myself and teslonian laid out the logic to both sides previously. Nobody is saying “are all dumps from S1”. But based on CFGN, t-trade and block trade(s), and other factors, I would claim it’s safe to conclude dilution has begun. But what exact amount of the entire shares traded is an unknown. It certainly isn’t “all”. Most are actually probably retail selling ahead of the note holder, especially the early dump this morning. I don’t think that was the note holder at all.
I mentioned on this board months ago that Yorkville’s confidence (or lack thereof) in Kona would be a big factor for shareholders when the time comes. Well, it highly appears to have started yesterday, unless these are holders of other notes or matured shares. Which is possible, but I didn’t notice any shares maturing 1/1/21 from previous transactions. Hope I didn’t overlook any. But it’s definitely possible.
Looking like it.
I took the opportunity to sell 10% of my holdings. Which is covering half of my investment. So can now lock up my shares and enjoy this ride.
Just the Beginning?
This is how good penny stocks move. No dilution. Company keeping us updated with how things are going. Those updates are positive. Share price reflecting it.
Fantastic scenario for BZWR
Read what I’m responding to. It was in response to Frank’s comment about the volume.
I laid out other positive scenarios in previous posts.
The other huge potential is the unknown of what these announcements are going to be now that the S1 is finalized.
But shareholders can voice concerns. It’s our right. Focus on the company, not trying to bash other shareholders for their honesty.
But at what price? The biggest transaction took it down to $0.0266
The only argument for this to be a positive is that you have (hopefully) new people getting heavily discounted shares who are potentially going to hold long term.
You want to see buyers actually buying and creating pressure, not just bid sitting and allowing retail to dump ahead of the note holder. But maybe we will get there if it’s a group loading into the dilution for a run/pump up
The positive side is that dilution almost always brings volume. Gotta have a way to sell those shares. So the concern of volume drying up and YA just slowly taking this down to a penny should be a small likelihood. Probably a better chance you see some other group load up into these new shares, and then they push share price up to profit off that.
It’ll be tough for KGKG if volume dies down. Especially now that they’re selling shares via CFGN. We currently have 6 MMs on the ask at $0.0320 or lower.
The addition of this apparent dilution without any type of positive company news/updates has obviously made an impact on share price.
I have the same views as Teslonian. There are indicators or clues people need to loom for. Both of us were hoping to see YA (note holder) show faith in Kona and not instantly unload shares and kill any stock momentum. Sadly, that appears to be exactly what they did though starting late morning on the first trading day of 2021.
I’m still betting on RC to get Kona back on the right track, but the early signs of 2021 with early dumping from the new MM with big t-trades and/or block trades showing up on each the first two trading days aren’t exactly what i would have been hoping for. Clear cause for concern and even closer monitoring of L2.
They teased these early 2021 updates pretty hard. If they fall short, could be a nasty sell-off. But if they truly are big definitive material announcements, then this is just a bump in the road and should be fine.
TBD
Beautiful thing
Looks like we are on the same page. I didn’t discuss what I found on YA when researching them last summer, but most of it turnt out negatively for the publicly traded company. With at least one or two exceptions for companies that had share price rise after involving YA
Curious why they released those 2 PRs after the initial S1 filing last year if that’s the case. But as it is, worst case is that RC could have released a PR with 2020 summary and 2021 outlook. Should have had ample time to prepare it for release. Hopefully that’s not a negative sign that sales for Q4 were subpar, or any other reason for holding off on that sort of update.
I wouldn’t care too much about it if it wasn’t for the instant dilution we’re seeing.
You should pay for it if you can’t get it through your brokerage account. CFGN is clearly the driving force here after showing up yesterday in the upper 3s. The same day the S1 was deemed effective.
And now they’re leapfrogging any large retail blocks on the ask. I don’t think they’re happy with retail trying to sell ahead of them. Y’all can draw your own conclusions from here. Mine is pretty clear: if RC continues to hold off from releasing any positive company info (if there is any), then it’ll just bleed down to a penny. I hate saying it. Because I still hold a large amount of shares, but it’s teetering the wrong way now. And there’s reason for concern, not just panic based on share price.
This can go sub-penny if RC and crew hasnt been working to expand business during the last 12 months. We had less meaningful updates than you can count on with 1 hand during 2020. No reason for a delay any longer. Cant use the S1 as the excuse. And Covid has been a known issue for almost 1 year now.
A lot of big holders will be getting out and undercutting CFGN as long as they stay towards top of the ask. Cant blame anybody for selling now. Especially if my math is correct, and YA received these shares at an average cost under $0.01. They could be happy driving this down. Their outlook may be to say ‘forget about the warrants, let’s ensure we take all profit on the 100M+ shares received from the SPA/S1’
But if they pull their shares from the ask, or release an update claiming they’ll lock up their shares, it will be one of the best scenarios. I just can’t be confident they’ll do that. Wish we knew if they had confidence in Kona to be able to deliver and grow share price or not. If they lack confidence, then they’ll keep this down for quite a while.
It appears (at the moment) the holder doesn’t want to sell under $0.03. So anything below that should be free money.
Just watch CFGN on L2. If they move lower, then this will need re-evaluated. But at the moment, they are not going under $0.0305 on their ask position.
We will know for sure when we see the updated share structure in February. For the 2nd half of 2020, the OS stayed the same. So I’d assume we see that increase to reflect the new shares being added/sold.
There were some clauses to were they could access shares early. Also, it was distributed in 3 segments. This could be the May shares. Unsure on my end. But pretty obvious it’s from one of the 3 allotments. Also, the transaction posted after hours yesterday supports this theory.
Gonna need something to keep volume up if they’re selling these new shares via CFGN already
Seemed odd. There was no way anybody should have been selling into the ask today, after the setup we had going in. To each their own, I guess.
Very ugly day, but he could (should) have plenty of updates to announce. Obviously most people figured he’d release something along with the S-1, and there was reason to believe so based on recent tweets and 3 months of zero updates via a PR.
However, today was another day of beautiful volume; half which came at levels above the open. If he drops the first of his company updates/PRs tomorrow morning, then it should erase today’s negativity fairly quickly.
But if he somehow waits several weeks for anything substantial.... well, don’t wanna think about that really.
The exact tweet from the morning of 12/31/20:
“2021 is going to be a breakout year for KGB and Monday can’t come soon enough! We appreciate each and every one of our shareholders and wish you all a Happy New Year! We have so much exciting news that we’ll be rolling out starting the first of the year!
$KGKG #Thewaitisover”
Fantastic setup. Could be in for a bang to start the new year
Ha. My thoughts as well. When posters don’t understand simple differences like that, it really ruins any respect they might be trying to gain on the board
We really need to cut the chatter about SEC football when talking Kona. Unless of course Kona pulls some sort of advertisement deal with the conference.
Heck, I even graduated from an SEC school, but all this Buddy Buddy “I root for you if you root for me” between the SEC fan base is nauseating. You’ll never find me pulling for Alabama or Florida just because my team didn’t have as successful as a season. That’s a losers and bandwagoners mentality!
Not quite enough buying pressure. But still a nice little morning.