Resonate Blends Inc (KOAN)

[Luho]

In all honesty, I'm pretty sure revenue didn't ramp up until after the JSJ loan was eligible to be converted. So that triggered the JSJ request for shares a while ago, and then TXHD didn't execute. That triggered the increased interest and extra shares needed. Then it went to court. Took about 3 months. Then settled.

You have to read the original loan details and the lawsuit and the settlement. All 3, if you want your answers.

But it makes sense. It's extremely unfortunate for TXHD. But that's what happens with toxic loans. A lot of times you get screwed.

Basically, JSJ had the perfect storm over the winter:

(A) TXHD price tanked to trips, and they (JSJ) were allowed to convert at 50% discount

(B) TXHD didn't have enough revenue yet to pay off loan with cash

(C) the rest is history

-----------

If the loan didn't convert for about 3-6 more months, its possible TXHD could have paid in cash.

But that's not the case. The timeline just wasn't on TXHD's side.

So now, it is what it is.

TXHD settled in a better situation that what would have happened if there wasn't a settlement. But JSJ is still set to make a massive payday off that 100k loan.

It's a tough spot for shareholders. Horrible short term. Potentially great long term. Play it how you want.