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Might have something to do with CannaVest note

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Det_Robert_Thorne   Wednesday, 10/21/15 11:16:06 AM
Re: theguy110 post# 1173
Post # of 1217 
Might have something to do with CannaVest note

Got to wonder if the 1:10,000 reverse has something to do with the overdue note issued to CannaVest, which is having its own problems and probably wants payment, whether in cash or via share conversion. An $8 - $11 post-reverse price would help in any share conversion, especially if CannaVest gets shares for debt during the 30-day period when most shares are locked up.
On December 23, 2014, the Company entered into a convertible promissory note for $1,200,000 with CannaVest Corp. The note represents $1,200,000 worth of raw material inventory to be obtained from CannaVest Corp. to use in the Company’s cannabidiol product formulations. The note accrues simple interest at a rate of 10% per annum and is due and payable in six months from the date of issue. The note cannot be prepaid. At any time, the outstanding principal amount of this note and all accrued but unpaid interest under this note can be converted into common shares at a price equal to the lesser of $0.02 per common share, the closing sale price, or the average of the lowest closing sale prices of the Company’s common shares during the five trading day period immediately preceding the date of such determination.

Should the Company default on this convertible promissory note, all outstanding obligations payable by the Company are immediately due and payable. In addition, CannaVest Corp. may exercise any other right, power or remedy permitted by law. Further, upon even of default, all unpaid obligations under this note shall bear interest at the rate of 12% per annum.

See page 12:

If my guess is correct, then post reverse, the initial conversion price will be between $8 and $9, which would mean adding about 150K shares to the post-reverse OS.

But since the conversion is an average of lowest closing prices, the price will probably drop post-reverse as the conversion commences, and the number of shares necessary to take the balance to zero will increase.

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