LongPost - The only difference I notice in the Amended Quarterly are the following (See items in Quotations)
P.45: For the quarter ended June 30, 2019, the Company paid the complete consideration for LYXR in the amount of 68,182 common stock at fair value of $75,000. "An additional 68,182 common shares were inadvertently issued then cancelled on July 9, 2019." - think this is harmless/topical update.
P.46: "For the quarter ended June 30, 2019, the Company issued 4,654,675 shares to reclass from Shares to be issued – equity to additional paid in capital for $12.3 million."
- I'm reading this as equity given, for an additional paid capital of $12.3M. So did LW Ventures agree to provide an additional $12.3M in funding on top of the original $8M? And does this mean they are issuing 4.654M commmon shares, to be reclassed to Preferred Shares C? Those have 100:1 voting rights but seems Preferred C is convertible to common shares 1:100?? As of now, we do not know what share class they will be reclassed to, but since A and B were cancelled and returned, C can be my only guess.
See below statement:
(On May 15, 2019, the Company designated 50,000,000 shares of Preferred Class C stock. In conjunction with the Company’s cancellation and retirement of its Class A and Class B Preferred Classes of stock, it had only Preferred Class C designated as of the date of this amended filing.)
I mean, I thought I owned a lot of shares, but if these Preferred C get converted ever, that's some massively wicked dilution we can expect. Maybe they structuring this way so they can continue to raise money while maintaining control, even if having to give 3-4 board seats away. Not certain how this pans out for early investors? Pondering still, thoughts are welcomed
