Importanrt - Warrant reprice, corrected. Apparently they’ve changed their mind as to repricing OUR warrants. I’m angry. My warrants date back to October 2016 and are good through October 2021 and priced at $.60 .After reading this most recent Q I found this, on page 15 under
Note 6 – Capital Transactions. In order to encourage the exercise of the 8,000,000 warrants issued to investors in the private offering of convertible notes dated March 2017 and the 28,804,000 warrants issued to investors in the private offering of convertible notes dated July 2017, the Company effected a temporary decrease in the exercise price of the warrants from $0.60 and $0.65, respectively, to $0.30 and $0.325 per share. As a result of the price reduction, the Company issued 12,332,750 shares of its common stock and received net proceeds of approximately $3.9 million. In connection with the induced exercise of the warrants, the Company recorded an inducement dividend of approximately $2.9 million.
So they cut a 50% break to the warrant holders from March 2017 and from July 2017 but those who were there in the beginning, far before these investors like me in October 2016, the ones who supplied the funds used to build out the first portion of the TECO building allowing us to FINALLY begin growing and reporting revenue, Nada, bupkis. You can expect the float to ballon by 12,332,750 shares due to these newly converted warants..
Additionally that same section; Note 6 – Capital Transactions
says; During the six months ended September 30, 2018, the Company received notice from convertible note holders of the conversion of notes having a total of $4,470,000 face value and $170,971 in accrued interest. Accordingly, the Company has issued 18,563,885 shares of its common stock based on a $0.25 per share conversion price. In connection with the conversions, $3,464,187 in unamortized discount on the related notes was recognized as interest expense and the Company has reduced the carrying amount of convertible notes payable by $1,005,813. That’s another 18,563,885 shares added to the float. Additionally that section states; The Company issued 1,543,844 shares in exchange for consulting services and recorded a related expense of $0.7 million. That would be NET1 and The Company issued 325,125 shares of its common stock in connection with the exercise of compensation warrants at $0.01 per share.ONE CENT.
The bottom line most important information to be taken from this Q is the float will balloon by 53,143,382 shares and it was done cutting a 50% break to warrant holders from March 2017 and July 2017 along with employee compensation at ONE CENT PER SHARE AND 1,543,844 shares in exchange for “consulting services”. I’m angry. Pinkie games. They told me they would reprice my warrants, they told the SEC but never reported which warrant holders to us the shareholders, the owners of the company. I believe this board should discuss this.Our float just jumped by 55,000,000 shares and I saw non thing from it. Did you? When the priced dropped below $.30 I began buying on the float and now own 400,000 shares at $.27 another 250,000 shares I bought in the January raise at $.40 and I’m sitting on 1.5 million warrants at $.60 which today look worthless. I know most of you are holding a smalller position but I took a gamble on JP’s moon shot and they F’d me after taking every penny they can get at a higher price but never offered me the break they did newer investors after promising they would.
