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Gotta get these groups in on LCTC. GME went to 483. LCTC would go to 1000.
We also went from 90m shares outstanding to 150m shares outstanding (pre split numbers).
Yea we need this wall street bets to get in on LCTC. This would go to 1000.
GME
BBBY
BB
AMC
THIS IS CRAZY.
Crazy seeing BLOZF keep going up.
Website is up now. They really should uplist to OTC QX (they were years ago). If they aren’t going to nasdaq anytime soon they should Atleast do this.
Can’t get out of its own way.
Rare to see a bid that large. But good to know. Thanks.
GRAMF on CNBC
Late buyer into the close posted 5k bid at 3.15
I agree. I believe he thought Altria was moving forward and thus the stock would rise and he would be able to do a capital raise at a much higher price hence less dilution.
So again Abundance you aren't understanding. The 2 small capital raises doesn't mean they couldn't raise $11m in one shot. IF Bunka is expecting positive Altria news and believes his stock is low why would he do a massive raise at a low price?
Also look at where this money is going
"The net proceeds to the Company from the Offering, including proceeds received upon exercise of the over-allotment option and after deducting the underwriting discount and the underwriters’ fees and expenses, were approximately $9,629,490. The Company plans to use approximately $3,700,000 of the net proceeds for research and development studies and the patent and legal costs associated thereto, with the remaining net proceeds to be used for general working capital purposes."
So 38% of the funds is being used to research and development studies and patent costs. Ok makes sense. the other 62% general working capital purposes LOL. SALARY.
Shawking no I just was trying to correct misinformation that is being stated here. Sorry if it was taken that way it just seemed like you and others were confused on the process.
Abundance. So again Lexaria needed to raise a minimum of $5m to trade on the Nasdaq. They have balance sheet requirements that we didn't meet so the capital raise was necessary.
I think its a joke for him to tell you he couldn't raise this kind of $ on the OTC when he did 2 raises in the within 8 months for around $4m. The answer I received from IR about this was they didn't want to dilute so much when the stock was near a multi year low. They were also awaiting news on Altria that they thought they would receive in Feb 2020 not OCT 2020. So they did the small raise in NOV 2019 then May 2020 to fund them to they got the decision. Who knows maybe I'm being lied too.
Regarding the fees that HC wainwright charged. They are what you would expect.
Have you every participated in a IPO or a secondary? Its the same process. Broker dealer runs the deal as the book runner, brokers contact their clients to garner interest and obtain indications of interest and then shares are allocated. For this service fees are charged so Lexaria gave the firm HC warrants and the brokers get 8% commission as an incentive to sell the deal.
All of this information is in the sec documents.
"The Company agreed to pay Wainwright an underwriting discount equal to 8% of the gross proceeds of the offering and a management fee equal to 1% of the gross proceeds of the offering, and reimburse Wainwright for a non-accountable expense allowance of $50,000, up to $100,000 in legal fees and up to $12,900 for clearing expenses. Additionally, as partial compensation for Wainwright’s services as underwriter in the offering the Company also issued to Wainwright five-year warrants (“Representative Warrants”) to purchase 166,781 shares of common stock with an exercise price of $6.58 per share."
“Did you not notice HC Wainwright investment bank infusing $11M”
I don’t think you did know how it works based on that statement. Your trying to paint a picture that an investment bank took a stake in the company. These are regular people that got sold a deal. Don’t overthink it. Brokers get paid a nice commission for these deals 8%.
Unlike the offerings on the OTC where it has to be accredited investors. These deals can be offered to anyone.
So this is a false statement. Hc wainwright sells the deal to their clients. Same as a ipo or a secondary.
Morgan Stanley doesn’t buy all the shares of a ipo they run the deal and sell it to their clients.
Hc wainwright got paid a lot of fees and received warrants. It’s win win for them.
“Price is holding up okay”
We are .146 pre split currently.
And below .175 (5.25) where we just raised $.
Stock was .25 (7.50) pre split.
They gotta issue stock options to everyone first then news!
The hype of this one sure cooled off very fast.
They aren’t doing “consulting” work. It is their salary. Because of Canadian tax laws they structure it as “consulting fees” for tax purposes.
Gotta love how he sneaks bad news into another press release on a after market on Friday. WHAT A JOKE
“Separately, pursuant to Lexaria's press release issued June 18, 2020, it has been informed by the NIH that members of its Scientific Review Group for its National Institute of Allergy and Infectious Diseases' financing opportunity announcement RFA-AI-20-028 -- Partnerships for Countermeasures against Select Pathogens, have met to consider the applications they received at which time Lexaria's application was not discussed or scored. As such, it is not likely that Lexaria's application will be financed relative to other applications they prioritized, although no definitive decision has yet been provided to Lexaria”
Holy pre market.
TLRY
CRON
ACB
APHA
OGI
Lexx (unch).
Blast from the past SRNA (otc) had a nice day yesterday.
Underwriter (hc wainright) exercised its option to purchase the additional shares.
I was bullish on this until I read fine print and did the math.
Makes sense though cause they get a 8% discount to the 5.25 price so 4.83 + warrants which are $1.50.
Also if you read PR
The Company agreed to pay Wainwright an underwriting discount equal to 8% of the gross proceeds of the Offering and a management fee equal to 1% of the gross proceeds of the Offering, and to reimburse Wainwright for a non-accountable expense allowance of $50,000, up to $100,000 in legal fees and up to $12,900 for clearing expenses. Additionally, as partial compensation for Wainwright's services as underwriter in the Offering, the Company also issued to Wainwright five-year warrants ("Representative Warrants") to purchase 166,781 shares of common stock with an exercise price of $6.58 per share.
Pursuant to certain tail rights held by Bradley Woods & Co. Ltd., further to the Company's May 2020 private placement financing, the Company is paying Bradley Woods $316,999.62 and issuing to Bradley Woods or its designees five-year warrants to purchase 60,385 shares of common stock at an exercise price of $6.58 per share.
Shocked the cleaning company didn’t get shares.
You need to look at the salary contracts. Deferring salary doesn’t mean he isn’t taking it.
Next we will see stock awards given at these levels so his ownership % can get back to where it was pre split.
Estimated Funding Required During the 12 Months beginning September 1, 2020
Expense
Amount
($)
Estimated Completion/Due
Date
Research and Development (Products)
50,000
12 months
Research and Development (General)
600,000
12 months
Patent applications and trademark
300,000
12 months
Marketing and Sales
75,000
12 months
Consulting Fees (~50% in officers and directors contracts)
1,200,000
12 months
Wages and Salaries
525,000
12 months
Professional Fees
200,000
12 months
Rent
45,000
12 months
Other general administrative expenses (including travel, insurance, conferences, and fees)
300,000
12 months
Interest Expense
10,000
12 months
Total
3,305,000
See the problem when you just go on and on making things up is people can actually go to sec filings and see what the truth is.
All of the salaries are public.
Good try.
MONTHLY COMMITMENT
BUNKA $29,706
DOCHERTY $25,609
RESEARCH AND DEVELOPMENT $3,854
ALL $ =$CAD
HOLY COW THIS IS SOME QUARTERLY REPORT. SOLID $295K REVENUE. KABOOM
So you aren't understanding. The Altria money would of been used for more studies etc and the share price would of rose significantly so then doing a $10m financing would be a lot less dilutive.
Its nice that you finally admitted though that Bunka treats the capital raises as "play money"
The way things are going currently.
Don't be surprised if there is another reverse split in the future to remain on the nasdaq.
I believe he could of raised that money on the OTC. I think he didn't because the stock was so low and he did 2 small capital raises NOVish 2019 and may 2020 thinking he was going to get the investment from Altria and he could keep the dilution at a minimum then after great news and a rising share price do a larger financing so its less dilutive. He has always stated publicly that he wanted to get off the OTC and list on the Nasdaq. Its like going from AAA to the big leagues.
True but I also think they could of raised $9m+ at .175 + warrants when stock was .25 on the otc.
It’s all in the past so it’s over with now
Why would we not have any money. We did numerous capital raises over the past 2 years on the OTC.
Nothing changes regarding cost basis it all gets transferred over. Not a issue.
no hold period when you do these capital raises and it was a upsized offering so they have all the orders and its done. On or around 1-14 is a formality. Shares are in clients accounts already from the deal.
Getting back over the deal price of 5.25 would be nice to see. but sadly that is still just .175.
HC wainwright gets 30 days to buy the extra shares which would be more money for Lexaria.
I'm amazed that they didn't put any news out, any sort of update, conference call, or state when the corporate presentation is that was scheduled for the 11-14th of January.
Why are you amazed. The offering added all these shares so the float has increased substantially. Your going to get higher volume the first few days as people trade out and keep the warrants.
HC Wainright sells the shares to their clients like any normal capital raise with a broker.
That’s what happens when you do a deal and increase the float 75% overnight.
Sadly H.C. Wainwright didn’t support the deal and that’s usually what good firms do.
Warrants have a 5 year expiration and are out of the money. Nobody would exercise them today.
Sick to my stomach seeing blozf up 51% and market cap of 120m vs LCTC which has a solid $7m market cap.
I agree with the first part of your post regarding the reverse split. The problem is they did do the capital raise and they did dilute those loyal shareholders. So when overnight you see the share count go from 100m to 218m pre split numbers that's a joke.
Second on the Altria deal Bunka got taken. Altria got 16.67 stake in Lexaria Nicotine. For $1 MILLION
So Bunka only had a $6 million valuation on the nicotine division.
This great partnership that he gloated about for over a year they DIDN"T EVEN COMMUNICATE WITH HIM THEY WERENT MOVING FOWARD. THATS HOW MUCH THEY THINK OF HIM TO GIVE HIM THE RESPECT OF A PHONE CALL.
But lets keep on making every excuse for them.
I was just like you and abundance for many months and sadly I was wrong and he fooled me.
yes (all taken from S-1)
Abundance give me a break. He screwed shareholders. the stock is .135 call a spade a spade.
these investment firms took him. He paid $500k for uplisting + hc wainwright made fees for this uplisting. Trading below your offering price is never a good sign. Be honest. We all want this to do well but when you have a coach go 1-15 a few years in a row you can't keep saying what a great job he is doing. The dilution at these levels makes ZERO sense.