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Re: gramara post# 634

Thursday, 05/18/2017 9:46:42 AM

Thursday, May 18, 2017 9:46:42 AM

Post# of 1371
LOL this has to be the dumbest thing I've ever read, great job Jarrod !! LOL

FROM BS ARTICLE

(The company will pay for MJ by issuing 9,750,000 common shares at a price of CDN$0.20. The merger contract includes some insignificant conditions that we don’t believe could break the deal; these include a finder’s fee of 400,000 common shares, the CSE approval, and some other customary conditions that were not highlighted in the press release.''

Share dilution

The first thing that we did not appreciate in the merger agreement is that the company is issuing shares to acquire MJ. This has been quite bad for previous shareholders and explains the recent decline in the share price)


REAL INFORMATION : Incentivized Compensation Plan
Perhaps the most exciting piece of this acquisition is the means in which Vinergy is acquiring MJ Biopharma. 4.25M shares of common stock priced at $0.20CAD are to be issued upfront, 2/3 of which will be held in escrow. But MJ Biopharma management and shareholders have the opportunity to earn an additional 5M shares is they bring each of their 4 product segments to commercialization. This is a genius move by VNNYF management that could drastically increase shareholder value down the road.

FROM BS ARTICLE

Savvy traders surely noticed that this last announcement is tricky. The company has issued800,000 units of stock and warrants. As the warrants are exercisable to obtain another one, the total potential dilution is 1.6 million new shares. According to OTC Markets, the company has approximately 36 million share outstanding, thus previous shareholders lost about 4.4% in this transaction.

REAL INFORMATION

Financing is done at 100% higher than yesterday's close is clearly not a bad sign. Someone willing to pay a 100% premium to buy a significant ownership in the Company should be rather welcomed. Clearly we need this financing to be announced closed.


FROM BS ARTICLE

The balance sheet doesn’t look good

We found the latest balance sheet, which reveals that the financial situation is not optimal. As of November 30, 2016, the company showed the following accounts:

Loans receivable: CAD$29,400
Advances to operator: CAD$13,546
Total Assets: CAD$46,936
Convertible debentures: CAD$215,000
Due to related parties: CAD$490,913
Total liabilities: CAD$907,894



REAL INFORMATION

Post this the date suggested by the author, the Company closed a financing of 2M+ dollars and accordingly the balance sheet risk is invalid. In fact the only money they spent aside from their low burn rate of c. 20k a month is 260,000$ to acquire 65% of Health Canada and FDA licensed lab that allows them access to various IP as well formulations that are unique to MJ BioPharma. In turn MJ BioPharma is following a licensing model that allows them to remain lean and continue the low burn rate whilst generating revenue from their royalties.

Overall, this seems like someone who either has a short position against the Company or one that is misinformed.