Hemp Inc (HEMP)

[Det_Robert_Thorne]

Stock behavior could also be note conversion

Bruce Perlowin Lions Limos one large shareholder is dumping I am told and shorting though I don’t have definite proof - however, the behavior of the stock indicates that, this is exactly what is happening. However, we will prevail in the long run - don’t worry.

Those after-the-bell trades of 3M shares of HEMP at a slight discount have all the earmarks of some type of settling trade between the broker and their client.

It is a pattern I regularly see with conversion-eligible convertible debt, and in a way, it can look like a short sale to CEO Perlowin -- or at least he can describe it as such -- because the selling noteholder often doesn't hold the shares until the conversion demand is made and paid in shares by the company's transfer agent.

It goes like this:

The debtholder tells his/her broker the amount to sell, and the broker does so throughout the day. At some point, the total is reached, and the broker then "sells" the shares to the noteholder at a price below the average trading price, keeping the difference as commission.

The next day, a conversion demand is made of the company (sometimes directly to the TA,) at the discount to the trading price specified in the note, and the TA issues the stock to the broker to permit the settling of the "naked" trade with actual shares.

Of course if I'm correct about this, CEO Bruce would have seen it happen many times in the past, and so his explanation to his friends on Facebook is just a smokescreen.