BREAKING DOWN THE 8K:
- $LFAP gets funding for $1.5m “Working Capital”
- 1,500,000 allocated “Series B Preferred Stock” at a $1.15 (so on conversion 1,725,000 - the “Conversion/Dividend Stated Value”).
- IF Maxim/LFAP choose to buy back Series B Preferred Stock, they can do do at $1.35 (the “Redemption Stated Value”)
- no stock can be converted for at least 180 days
- at 24 months the stock will automatically convert, either at (1) 0.10 if the share price is above 0.10 or (2) a 20% discount to the lowest volume weighted average price during the five (5) trading days immediately prior to the automatic conversion date.
- The Series B Convertible Preferred shall have no voting rights. So this is PURE FUNDING until converted.
Tell me where the bad news is...? Nothing but positive news here!
For full transparency:
- 1,725,000 would at 0.10 be converted to 17,250,000;
- at worst case 0.03 floor would be converted to 57,500,000 in to the OS
So upon conversion it would lead to 17,250,000 to 57,500,000.
But I do know that 14,950,000 (86.86%) at 0.1 is locked up by an Institutional Investor who will not toxically convert as they already have a large interest in the success of $LFAP (you can probably guess who) - so when looking at worst case, the amount of shares not locked up by the Institutional Investor are 2,300,000 to 7,666,667
