FLES up nearly 200% today on relatively low volume.
It will be interesting to see what happens if they can get their financials out in time this year coupled with up-listing to the OTCQB.
Once the share price is up above a dollar or 2 they should be able to efficiently access their $4M equity line without adding to many shares to the OS.
To remind or notify those who are unaware.
1. Equity line is up to $4M over 2 years.
2. Accessed by issuing put options at market price with a 5% premium to the investor.
3. Can only access the line once every 10 trading days between closing of one put and issuance of the next. (So about 3 weeks between).
4. Up to $100,000 at a time limited by 3x the previous 10 days average trading volume in dollars.
5. Investor uses put option to buy shares from the company directly at the closing market price(-5% fee) on the day of issuance of put notice.
6. Investor has to sell those shares to recoup cost.
7. Equity Investor cannot own more than 9.99% of OS which currently would be about 53,000 shares.
8. They also have to get and stay listed on OTCQB to access this equity line. Applied for OTCQB listing on March 17th, 2020.
9. They also have to stay current in their filings to access this equity line.
So for the company to have complete access to the $4M, the share price would need to improve dramatically or the equity investor would have to immediately sell their shares. If the share price does not hold or gain the equity investor loses money.
Essentially under this model it benefits all 3 parties (shareholders, company and equity investor) for the share price to rise and continue to rise.
Higher the share price the less shares get issued on a put option.
$1 share price $100K == 100K shares
$2 share price $100K == 50K shares
$3 share price $100K == 30k shares
$4 share price $100k == 25k shares
$8 share price $100K == 12.5K shares
etc..
