To sell BILLION of shares like that would be a bad move, and I don't think Basu would that...millions yes, tens of billions, no!....let’s say, she sells those shares at a significant discount to the market, say 0.0005. That would mean she would have to sell 10 BILLION SHARES!! (the current authorized is only 4B). Sure, she could raise the A/S, but that's just way too many shares...and the more she has to sell, the more the discount (supply vs demand). That would be something a scrupulous Pinky CEO would do...dump billions & billions of shares. But I think Basu has a much bigger plan.
She is getting ready for the trial. She is getting her ducks in a row. Isn't it odd that all these developments are occurring just a matter of days before the trial? She is up to something.
Given all the publicity she has garnished lately from the MJ investors, combined with the upcoming trial, it wouldn't take all that much to generate $5 million. At a PPS of 0.01, it will merely take 500 million shares. At a PPS of 0.1, it will take only 50 million shares. Not out of the realm of possibility when you think about it. Just because she gets a verdict, and a judgment, doesn’t mean she will see a dime of that judgment for many years to come, if at all. Grewal would file an appeal, if for no other reason that to buy him a few more years while his appeal makes it way thru the judicial system. Basu knows this. Hell, she has yet to pay the judgments that have been awarded to Plaintiffs that sued her. She even tried to have those judgments discharged by filing personal bankruptcy. But it backfired. So I think Basu is aware that a successful trial doesn’t mean squat. But there is no reason why she can't take advantage of the appreciation in the stock price and volume due to Hemp/trial publicity to generate some cash by selling unregistered shares under 506(c).I think it's a smart move. No better time than now. After the trial, volume and interest in this stock would plummet.
