That convertible isn't fraud nor misleading. POTN mngmt has been very clear about the note. They made the deal in order to buy Diamond and to grow the brand to where it is now. Unfortunately POTN was facing two big hurdles at the same time and had to take a loan with not the most favorable terms. First, it's a CBD stock, and second it's a pink sheet and at the time was un-audited (2016 is now audited and we're waiting for 2017) meaning no banks will loan to you on good terms. Also good to note, the price of the stock was around .003 at the time of the loan so that's why the converted price on the note is .003. I would agree that they should have done a floating conversion rate something like 20% discount to trailing 50 day prices. Unfortunately at the time the company issuing the loans (SIGN) got amazing terms on the loan. In short, it's all spelled out and mngmt is doing everything they can to control those shares flow into the market as well as converting to preferred or retiring common to decrease O/S.
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