Healthier Choices Mgmt Corp (HCMC)

[ChuckBits]

It is kind of confusing, especially the $1.24 part. But that only applies if the pps is well above $1.24. Here's the deal:

1 unit converted into 1/4 preferred share and 20 warrants on January 23.

1/4 preferred converts (when the holder requests it) into 10 common shares, period. No cost.

Each warrant has been assigned a value of $1.075 so 20 warrants are worth $21.50. If I say "pay me", the company has the choice to pay me in cash (which they don't have enough of to pay for all the warrants), or they can pay me the $21.50 in shares. (known as a cashless exercise) Friday's close was .0206 so that $21.50 is equal to 1,043 shares.

So technically one unit in this case converts to a total of 1,053 shares. This is the reason for the major pending dilution, crash of the pps, & call for the RS & AS. The quantity of shares changes with the pps. Holders would only " pay" the $1.24 if the pps was at least about $2.30 (1.24 + 1.075)