Hemp Inc (HEMP)

[Det_Robert_Thorne]

Likely transfer of shares to cover conversion sale

If, as I believe is what's happening since Perlowin and Epling were charged by the SEC, most of HEMP's share dilution is a sort of convertible debt financing, which is why HEMP now has millions in notes and prepaid interest on the balance sheet.

The note holder naked sells the shares one day, then makes a conversion demand of the company the next trading day. Those shares are issued by the Transfer Agent to the broker working for the note holder, who then transfers the shares as a single block to the seller's account, which clears the transaction so that the process can continue.

I think that yesterday's 27M share T-trade plus today's 36M added about 63M to HEMP's OS, but of course, since Perlowin has gagged the TA, we won't know the OS increase for 4Q/17 until the end or March or early April, and the 1Q/18 increase won't be known until mid-May.