PPJ Healthcare Enterprises Inc (PPJE)

[Det_Robert_Thorne]

It's not a LOC, but a share-selling agreement

Let's not forget she has a 5 milly credit line if needed.

The December 6, 2016 PR doesn't talk about a $5M Line of Credit, but a deal that enables GPL Ventures to buy $5M of PPJE stock at a agreed-upon stock price at the time of the purchase. According to the PR, PPJE has to file a registration statement for this stock sometime within a six month window that opened on Dec 5, 2016, the day the agreement was signed.

I suspect that the terms will be the same as that of the first $50K that came in the form of a convertible note -- also issued on Dec 5, 2016 -- that will be eligible for conversion starting six months after the signing, which would be the week beginning June 5, 2017. Those terms are 70% of the lowest trading price during the "Valuation Period", which could be day of conversion, a ten day window, or a window with a longer or shorter period.

Basu likely had to file for the 1:1,1000 RS in February as a condition of the agreement, because GPL will need it to enable selling as it converts the notes and buys/sells the shares under the $5M purchase agreement.

The reverse hasn't happened yet because GPL can't begin to convert until June 5, so there is no need to RS at this time.

I suspect that the RS will happen in early June, and there will be a series of accompanying press releases and a pump campaign to drive interest to the stock so that GPL can quickly convert and sell the $50K note, then start the process to buy/sell (probably more like short into market, buy direct from PPJE, cover shorts) the newly registered stock.

If they do this during the 30-day period following the reverse split, where PPJE will trade as PPJED, then they will have relatively little competition from other sellers, because all of PPJE's current holders will be locked from selling while the TA issues the new shares, and that will take a couple of weeks.

If PPJE remains at $0.0001, then the post-reverse price will be $0.10, but GPL will be able to buy from PPJE at $0.07, and the price will move lower as GPL sells into the bid.