Healthier Choices Mgmt Corp (HCMC)

[ChuckBits]

I thought it was clear the additional shares were needed for the warrants associated with the units? Remember, there is a "cashless exercise" option using the "black scholes" value which I believe is $1.08 each.

So, in addition to receiving 10 commons for each unit, you get "20 warrants". However, using the b/s value of 1.08 and for a simple example assume VPCO is trading at .54 cents, you would get 40 shares from the warrants. Total shares of VPCO issued for ONE unit is 50.

20 x 1.08 = $21.60
$21.60 / .54 = 40

They aren't going to hand out $21.60 in cash, but they will hand out 40 shares. Hence the need for millions & millions of shares. Forget about needing to be over a buck to stay listed, VPCO needs to be around $2.25 to avoid issuing tons of shares.

I think I am right or close how this works but welcome any corrections...