For consideration folks. As the price continues to climb keep this in mind.
There are Warrants out in four different series that were issued as part of an early on stock purchase agreement.
Those warrants give the holder the right, NOT the Obligation, to purchase additional shares of Common stock at affixed price if that price level is achieved.
The Total number of Shares involved = 1,230,350 Shares.
The first level is .25 ( Twenty Five Cents per share) and the total amount aloud to be purchased is 1,000,000 shares.
The next Level is at 1.75 ( one Dollar Seventy Five Cents) and the Total shares to be bought = 31,429
The next Level of purchase is at 2.64 ( Two Dollars Sixty Four cents for 94,329 Shares.
The final Level ( or class of Warrants as you wish) is also 2.64 and the Total number of shares = 104,529.
So, when the price hits .25, twenty five cents,you could have a sudden large volume of trading, all buys of course at first, up to one million shares!
Now, since those shares were part of an initial stock purchase agreement there is no way to know if the buyer will immediately turn around and sell them for quick cash, or hold them as the company grows in strength. Therefor, the trading could get quiet " choppy" so to speak for awhile! Especially since those warrants are in the hands of a small number of investors, blocks of buying could be quiet large! If so, this could run V E R Y quickly ! Not saying it will of course, but were I one of them I would hold for much more.
This was another reason why I said that you don't want to be out of this stock over the weekend. If it opened at or near .25 for any reason, and the exercising of those Warrants started, one might never get in at or under these low prices!! Can you imagine those warrant holders picking up one million share at .25 and the Float not changing what that would do to the up ward pressure on the Stock !! A One Million Trade day; or even week!?
With NO float change and ALL buys!!
It is also my understanding that since the Warrants covering those shares were issued as part a purchase they must be counted as part of the O/S and are therefore already accounted for in the float. That also explains why some folks see the float as 5 Plus Million and others as 3 plus-million.I am part of the 3-4 Million Float as I realize that while those shares must be counted in the float as NOT owned by Mr. Hailong Liu they have NOT been issued to anyone as they have NOT been purchased with cash, just promised to be allowed to be purchased, they don't reallyexist in the Float yet. Therefore only 3 Plus Million can really change hands until after the stock hits .25 and they get purchased!
So folks, were those shares to get " Bought": and held, as the fictious Ralph Cramden use to say, " POW ZOOM Alice, right to the MOON !!".
Don't forget, the Warrants are the " Right" to buy a certain number of Shares. N O T the obligation too. Perhaps the won't be. Or only some of them will be exercised! Only time will tell.
One thing is for sure. at the .25 to .30 level this could get to be a VERY interesting ride folks!
As for myself, well I have said for over two plus years, I am here for the L O N G haul, not the one or two dollar show.
Now I also have another V E R Y exciting point to make to those of you whom are here for the longer haul ( everyone sells sooner or later, after all, it is just an investment folks). And I will try to give those points in the near future. A point far more exciting than those in this post. But it will apply to those whom are stayingin only and only if the company is successful.
But the way, the info in this Post can be found in the companies last annual report for those who wish to see these facts for themselves-Just do a little D & D
Best to all,
Danni
