100M Shares
It may not go up for awhile, Whatsup. Who knows. Their funding is so convuluted to me. I start reading and it's like a glass of wine to me. It gives me a headache and makes me sleepy. There are so many convertibles. They get so many small loans and fund acqusitions with shares and bonuses if goals are met, etc. Engeni, I see, didn't reach its breakeven goal last year. But at the same time, that means HLIX issued no bonuses.
There are so many convertibles that can convert at .90. But there are stipulations that they can convert at a 30% discout to the price, IFF the price is lower than .90. And that's where we find ourselves, so you'll have that constant "toxic" drag, so to speak. But all those convertibles expire within the next 18 months I think, and the lower the price, the greater the dilution. So, I think it's just easy to round up to 100M shares here.
It all doesn't matter if the fundamentals are there. Money likes money. It's just that simple. It's a still a micro cap, and unlike Zac, I don't call this a "frustrated" price. I don't think p/s of 2 is all that great but not all that bad either. $3.00 was pretty crazy, but then the entire industry was crazy. These intrest rates on these convertibles could never be paid, so there will always be that downward selling pressure for great returns.
There are also lots of alignment of interest. There are warrants atached to all thsoe converts that can be exercised only at prices at $1.00 or above for the most part. So that would be the new floors of internal selling I think after 18 months.
And these are good alignment of interests:
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On February 6, 2019 the Company awarded an executive an option to purchase a total of 100,000 shares of the Company’s common stock at an exercise price $1.51 per share. These options vested on May 6, 2019 and have an expiration date of February 6, 2024.
On March 19, 2019 the Company awarded the Chief Financial Officer, two options to purchase a total of 300,000 shares of the Company’s common stock at prices ranging from $2.35 to $2.59 per share. These options shall vest over a three-year period from March 2020 to March 2022 and have expiration dates ranging from March 2024 to March 2029.
On March 19, 2019 the Company awarded the Chief Executive Officer, two options to purchase a total of 500,000 shares of the Company’s common stock at prices ranging from $2.35 to $2.59 per share. These options shall vest over a three-year period from March 2020 to March 2022 and have expiration dates ranging from March 2024 to March 2029.
On May 2, 2019, the Company awarded an investor an option to purchase a total of 125,000 shares of the Company’s common stock at an exercise price of $2.03 per share. 62,500 of the options shall vest immediately and 62,500 of the options shall vest on August 2, 2019 provided the marketing agreement between the Company and grantee has not been terminated. These options shall expire on May 1, 2024.
In May and June 2019, the Company awarded five employees, an option to purchase a total of 50,000, 40,000, 50,000, 50,000, and 30,000 shares of the Company’s common stock at prices ranging from $1.05 to $2.03 per share. These options shall vest over a period ranging from September 2019 to June 2020 and have expiration dates ranging from May 2024 to June 2024.
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But the fact remains that the lower the price, the greater the demand. Is the company serious and truly trying to reach profitability? I think so. Next year, maybe $20M in sales is not at all unrealisitic. So, 25 cents is would be fantastic! It may never get that low.
I have that Nano cap of NROM over there that's not convuluted like this and it is such a great deal. They have convertibles at .50 converstion holding me at .50. And they expire last month, and we don't have any word on our refinancing. Silence is never good. But the dilution will be over and that company is profitable and I have so much more shares that because it is a better deal. Pizza, not as exciting as this, but much easier to understand and PROFITABLE.
My thoughts I I"m just going to plow through all the selling this year and see what happens. Iheartjane is a real deal, and they seem to be the market leader. They are a tool for all those cuttthroat competitors, so they grow with the industry like us. We are going to grow with the industry. I do beieve in this industry.
It's very convuluted, but these convertibles probably gave me my gift of .50 cents. That was my target, and they helped me get there maybe. Zac may be frustrated, but Scott put these deals together. They are new, there is risk, and smart money wants guarantees. I'm sure they never wanted to fall below .90, which kinda makes those notes toxic in a sense. But there are real fundamentals, so I wouldn't call it your death spiral notes. Fundamentals is what it would all come down to. Make a strong company, and none of it matters. Dilutions matters, of course, but it takes money to make money.
Basically, taht seems to be our Fed's policy of debasement anyway, so how are we any different? The physics here should be better AFTER the year 2020 I think. So, I prefer physics and fundamentals, but the best I can hope for for 2020 is fundamentals to overpower bad physics. And with this team, I don't care. If it falls, I'll buy more . IF not, 10,000 isn't that much but it is good for instant grat. .25 cents, a true gift but still not as beautiful as NROM.
The End.
