"Per the 10k. There are 50 million shares that were purchased (unregistered securities). Investorstemcell called this a type of "bridge loan" until Cassel pulls through with a funding deal.
Per the 10k these 50 million shares have to be "cashed out" between $0.0299 and $0.11."
COMPLETELY, TOTALLY FALSE IMO. Please cut n paste exact pages from 10-K. Not a shred of that is true IMO. None.
There were 50 million warrants "granted" as in GIVEN AWAY, in combination with 50 million shares of common stock that were sold for a total gross (means there could be fees and who knows what "costs" taken out of that gross) for $865,000 total. 865,000/50 million = .0173 was paid for each of those shares. No one "purchased" the 50 million warrants, they are GIVEN AWAY as a "sweetener" to the stock purchaser- to entice them to be willing to buy the stock, thus providing the $865K "financing". THAT is what took place.
Further, there is ZERO evidence any "bridge loan" which is a LOAN being in place, or going to take place or whatever. A "bridge loan" is just that, A LOAN. NOT warrants, not common stock being sold, etc but a LOAN (a DEBT instrument w/ a high interest rate typically and short duration) secured with "collateral", hard assets like real estate, machines and equipment, receivables, etc.
Also, the 0.11 for the warrant "strike price" (it's NOT the price the common shares were purchased at- see above calculation, they were sold at .0173 avg per share to gross $865K) is totally incorrect and is a "typo" in the 10-K and is corrected on the very same page.
Most recent 10-K, PAGE 51:
"
warrants issued in connection with our private placements in 2013 to purchase an aggregate of 50,350,536 shares of our common stock at prices from $0.011 to $0.0299 per share expiring ten years from the date of issuance.
Recent Sales of Unregistered Securities
In 2013, the Company sold an aggregate of 50,029,227 shares of the Company’s common stock and warrants to purchase 50,350,536 shares of the Company’s common stock for aggregate gross cash proceeds of $865,000. The warrants are (i) exercisable solely for cash at an exercise price of ranging from $0.11 to $0.0299 per share"
So, the "private placement" is/was done and is OVER, that common stock (50,029,227 shares was sold and would be included in the now, 420 million shares outstanding count, dilution), and that revenue/cash would have been "booked" already and shown in the 10-K and there was very little cash left end of 2013, so it's BEEN SPENT ALREADY.
Now, what you had/have is someone who has "IN THE MONEY" warrants, 50 MILLION of them (50,350,536 to be exact) at a "Strike" price of .011 to .0299- the first line in that statement above, from 10-K. The .11 below is a typo, they missed the zero in it. So those warrants (right to purchase more stock and then "flip" sell it if you want) are as low as just above a penny a piece- and can be "exercised" for .01 to .0299 which means they could, even after this massive selling, be at least some, WELL "in the money" still.
THAT is the truth IMO and with the facts/10-K to back it up, contrary to "other" statements being made.
