Chalice Brands Ltd (CHALF)

[kevindenver]

A financing company like Dominion will often sell all of the shares received from the note conversion into the market. The timing of such sales are determined by Dominion.

Because of the terms of the notes, Dominion is guaranteed a profit of at least the equity conversion discount. Thus as long as there is a market for the shares, i.e any volume or market, TRTC can get some sort of financing from Dominion.

But, the fact TRTC has had to use this type of financing is why, as an equity investment, the odds are stacked against common shareholders until TRTC can get better financing.

The link below describes the primary risk one must understand fully before investing in any company that uses discounted equity convertible debt.
https://www.nasdaq.com/investing/glossary/d/death-spiral-covertible

All that said, who's to say some Canadian company with a pocket full of cash won't buyout both companies.

We have an interesting wildcard potential in all things cannabis these days.

Correct if I am wrong but will the Dominion Notes be repaid with the issuance of more common shares? If so I would assume these shares will be resold as soon as possible.