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That mysterious entity, or brand name, that never appeared on Hop-On financials.
If PM is up to his old tricks, CEDAR belongs to him, and HPNN shareholders will foot all expenses, and CEDAR will just happen to keep all the proceeds from sales.
A) VTNL manages to ship $1.5M of dog food in Q2, and uses the profits, if any, to pay off the debt and thus prevents the conversion of its debt into billion dilutive shares.
If VTNL manages that, and keeps on increasing its revenue as per the $9M of Purchase Orders that it touts, then the shareholders are "golden"
B) VTNL ships, say, $500K of dog food, has not enough money to pay off debt early (or buy back shares), and mega-dilution ensues as the lenders convert their debt and the market cannot absorb those dilutive shares fast enough.
That one is quite bad.
or
C) VTNL ships only, say, $100K of dog food, the CEO is exposed as a complete liar, very bad things happens to the stock, including a Reverse Split and a fake merger.
The complete horror.
Personally, as the resident VTNL basher, I expect something between B) and C).
The A/S is 50,000,000,000 shares. (Fifty Billions). The O/S is 2,196,119,432 as of April 28, 2018.
Both the A/S and the O/S skyrocketed during the first Q:
The A/S was raised from 1 billion shares to 3 billion shares in November 2017 Then to 10 billion shares in December 2017 Then raised twice in February 2018m first to 15,000,000,000, then to 25 billion. Then a last time to 50,000,000,000 in April.
The new dilutive shares were being issued to convertible debt holders:
Unfortunately, VTNL carries a lot more convertible debt than $214K on its balance sheet. During the first Q 2018, VTNL borrowed $492K more, from Auctus Fund and Emerging Corporate Financing and Power Up Lending.
If $214K of debt generated 1.5 billion shares, how many shares will be required to pay off $715K of debt ?
As to the expected Q2 financials, last year VTNL filed its 10-Q on August 11. They can get up to 5 calendar days grace by filing a NT 10-Q.
Q1's gross revenues were ... $968. The CEO projects $1.5 millions in sales for Q2, which ended last month.
But dilution does reduce the share price, when the newly issued shares are being immediately dumped on the market, which is always the case for dilution caused by convertible debentures and various other kinds of convertible debt.
The toxic lenders get (new dilutive) shares at a steep discount, and make money even as the share price go down, and then obtain a new tranche of discounted shares at a discount off the new lowest price they helped establish.
And they will continue to do so even if the apparent share price reaches $0.0001.
And after the debt is repaid, they will gladly lend the same money again, at the same conditions, and a Reverse Split will help them dump the new shares will under the previous $0.0001.
So yes, the issuance of dilutive shares hurt shareholders both ways.
Principal Amount: US$175,000.00 Issue Date: February 6, 2018 Purchase Price: US$157,000.00 OID: $18,000.00
CONVERTIBLE PROMISSORY NOTE
FOR VALUE RECEIVED , VET ONLINE SUPPLY, INC. , a Florida corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of AUCTUS FUND, LLC , a Delaware limited liability company, or registered assigns (the “Holder”) the sum of US$175,000.00 together with any interest as set forth herein, on November 6, 2018 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. () This Note carries an original issue discount of $18,000.00 (the “OID”), to cover the Holder’s accounting fees, as well as monitoring and/or other transactional costs incurred in connection with the purchase and sale of the Note, which is included in the principal balance of this Note. Thus, the purchase price of this Note shall be $157,000.00, computed as follows: the Principal Amount minus the OID. () Calculation of Conversion Price . Subject to the adjustments described herein, the conversion price (the “Conversion Price”) shall equal the lesser of (i) 58% multiplied by the lowest Trading Price (as defined herein) of the Common Stock (representing a discount rate of 42%) during the previous thirty (30) Trading Day period ending on the latest complete Trading Day prior to the date of this Note and (ii) the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 50% multiplied by the lowest Trading Price (representing a discount rate of 50%) during the previous twenty-five (25) Trading Day period ending on the latest complete Trading Day prior to the date of conversion (the “Market Price”).
“Trading Price” means, for any security as of any date, the lesser of: (i) the lowest trade price on the OTC Pink, OTCQB or applicable trading market as reported by a reliable reporting service (“Reporting Service”) designated by the Holder or, if the OTC Pink is not the principal trading market for such security, the trading price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no trading price of such security is available in any of the foregoing manners, the average of the trading prices of any market makers for such security that are listed in the “pink sheets” by the National Quotation Bureau, Inc., or (ii) the closing bid price on the OTC Pink, OTCQB or applicable trading market as reported by a Reporting Service designated by the Holder or, if the OTC Pink is not the principal trading market for such security, the closing bid price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no closing bid price of such security is available in any of the foregoing manners, the average of the closing bid prices of any market makers for such security that are listed in the “pink sheets” by the National Quotation Bureau, Inc. To the extent the Conversion Price of the Borrower’s Common Stock closes below the par value per share, the Borrower will take all steps necessary to solicit the consent of the stockholders to reduce the par value to the lowest value possible under law.
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Convertible promissory Notes start converting when the debt is aged at least 6 months, as per Rule 144.
You can make your own. Buy cheap regular pet treats, buy a bottle of hemp oil on Amazon, and pour the hemp oil over the kibble. It also works with olive oil.
Also, HPNN undergoes 2-years long or 3-years long dark spells.
Sometimes during the dark spells, PM publish press releases announcing new contracts and new products, but, years later when the financials are produced, it is revealed that there were $0 of expenses and $0 of revenues that year,
so the "contracts", "purchase orders" and "new products" were all lies.
Hop-On can be any kind of company, as suits its only benefactor.
At one point they're a cell phone company (that doesn't sell any phones), then they are a E-cig company, then a communications company, a Woody Patch company, a gaming company, a cheap electronic watches company (that doesn't sell any watches), an anti-radiation gizmo company,
So you do not worry that a company that appears to be selling less than $1M of hand-made soap suddenly decided to order $6 million worth of pet food, which they do appear to be selling at all ?
No, the increase in the A/S has no immediate effect on the share price, unless some shareholders are wise enough to get out early, and those are rare.
It happened with VTNL, where the A/S was raised from 1,000,000,000
November 9, 2017: 3,000,000,000 December 14, 2017: 10,000,000,000
February 6, 2018: 15,000,000,000 February 22, 2018: 25,000,000,000
April 30, 2018: 50,000,000,000
without immediate adverse effect on the share price.
None of those (many) increases were announced by way of 8-Ks, and the OTCmarkets value wasn't immediately updated. VTNL's hapless shareholders had the surprise by reading the financials, except those wise enough to consult the SOS website. Those were disbelieved.
During those gigantic increases, the CEO was babbling about "reducing the float" and "shares buy-backs". While borrowing $400K more toxic debt.
Also, HPNN lacks a California license to manufacture or handle cannabis derivatives (like CBD-enriched hemp oil). It cannot ship those out-of-State either. And dispensaries cannot carry them.
And, of course, it will never get such a Pot license without a legit business license...