CV Sciences Inc (CVSI)

[Det_Robert_Thorne]

CANV may dilute itself into relative oblivion

Did any of you read the amended S-1 that was filed on Sept 22?

http://www.sec.gov/Archives/edgar/data/1510964/000101968715003530/cannavest_s1a2.htm

CANV has been selling convertible notes in tranches for the past four - five months, and the first %510K note will become eligible for conversion on November 19, 2015.

The conversion price is either 60% or 70% of the lowest trading price in the prior 30 days (or perhaps average of that lowest price over a certain number of days. It's confusing).

At $0.60, that means a conversion price of between $0.36 and $0.42, which, on a $510K conversion will add at least 1.2M - 1.4M shares to the OS, but it will be a lot more than that, because the price now is lower than $0.60, and they won't convert the $510K at once, but will convert in stages, with a high likelihood that the price will fall s the conversion procedes,

In the S-1, CANV says that share count will approximately double from the current 35M, but I suspect that as the various tranches come due, the final share count will be much, much higher, and potentially, astronomical.