OWC Pharmaceutical Research Corp (OWCP)

[BruceLake]

DGF is not stockpiling their common shares. The following is from the loan agreement and also on page 20 of the September 30, 2019 10-Q:

The Series A Convertible Preferred Stock have a beneficial ownership limitation such that none of the holders of the Series A Convertible Preferred Stock have the right to convert the Series A Convertible Preferred Stock to the extent that after giving effect to such conversion, the holder (together with its affiliates and any other persons acting as a group together with the holder or any of the holder’s affiliates) would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the shares of the Company’s common stock outstanding immediately after giving effect to such conversion. However, by written notice to the Company, a holder of the Series A Convertible Preferred Stock may waive the Maximum Percentage provision, when such notice will be effective 61 calendar days after the notice date.

Maybe somebody else can comment on this or correct me if I'm wrong, but I don't ever recall DGF providing a written notice to waive the "Maximum Percentage". Neither was this mentioned in the latest conversion filed yesterday except stating:

issued the investor an aggregate of 23,371,167 shares of Common Stock, which constitutes greater than 5% of the number of shares of common stock outstanding as of November 13, 2019,

I would really appreciate it if someone could elaborate on the above.