Resonate Blends Inc (KOAN)

[RMD1]

In October of 2018, there was a settlement between TXHD and a holder of a convertible note, Lester Einhaus. He received 475,000 shares. 198,000 up front and then the rest in tranches as long as he was not above a 4.99% ownership. At the time it was .70 per share which gave him a value of $332,500. Rumor has it that he never sold his shares which is crazy because all lenders sell their shares as soon as they get their hands on them. Now those shares would be worth $71,250. So if he had just sold all of his shares like all the other lenders do, he probably would have averaged .50 per share or $237,500. After taxes he could have still taken $100,000 for himself and then bought back the same 475,000 share position with the remaining value. Talk about a horrible move.