Ok long time reader, first time poster...I've been enjoying very much the (non-pump and dump posts for the last month or so). I have 120k shares @ .06 cost basis and like my position, but wonder if I went "all in" and bought up to 500k shares would I not get a near certain $100-$200k return? But here's what holds me back from that and where I would appreciate the collective wisdom of the group:
In the Q2 financials it lists in Note 4 a $1.8M note to "Sign". First what is "Sign"? Second and much more concerning is it says the "interest does not accrue since the addendum agreement in exchange for a fixed conversion rate of $.003 per share"...is that just paying interest through shares or the whole note converts to shares? If the whole note, that's $1.8m/.003=600m shares (roughly all the unissued shares)...if its just interest that's $12k/.003=4m shares per month of dilution to pay interest. Obviously its the 600m prospect that scares me, but would they possibly be so foolish as to structure it that way?
Second, in the SeeThruEquity $.25 price target, it calculates that price using DCF analysis and taking the equity value of the enterprise ($34m, which now seems low given trending revenue) and divides it by the 135m shares of FLOAT, not the full 576m shares outstanding...if you divide by the full 576m shares outstanding you get the current $.06 market value. This is what gives me comfort that the $.06 value is rock solid but gives me some pause when people quote that $.25 target.
Third there was the discussion in the last week about share conversions for the Auto Mall business about the dilutive additional shares that might be issued (and does that relate in any way to the $1.8m convertible debt above?)
Finally, the legal status of CBD...I read conflicting things on the internet (don't we all)...I live in CA...so if I ordered Diamond CBD gummies would I be "breaking the law"?
If I got those 4 issues cleared in my head, I think I would join WIC and "sell the farm" to buy shares at this price. I feel like we could use our collective resources to solve these issues (unless they already are and I'm late to the party) and go "all in" on POTN before the crowd...
Would love any feedback and keep up the great posts.
