BioRestorative Therapies Inc (BRTX)

[stervc]

Respectfully, with that BRTXQ info, here's what is says...

First... I think we both can agree that BRTXQ is going to be huge... correct?

Second... and back to the topic that you are referring...

Here's what it says on Page 12:

http://www.biorestorative.com/wp-content/uploads/2020/07/DISCLOSURE-STATEMENT-OF-REORGANIZATION.pdf
C. Unsecured Claims

As of the Petition Date, exclusive of payroll obligations, the Debtor’s unsecured liabilities were approximately $13,797,835.

Then on Page 21, Section 6.5, Item (a), it states what you are referring to where it says that...

http://www.biorestorative.com/wp-content/uploads/2020/07/DISCLOSURE-STATEMENT-OF-REORGANIZATION.pdf
In accordance with section 1145(a)(1) of the Bankruptcy Code and subject to the Leak Out Restriction, shares of Common Stock in the Reorganized Debtor in an amount equal to the Allowed amount of the General Unsecured Claim multiplied by one-hundred (100); or

Unsecured Claim = $13,797,835
Multiple to common stock = 100

So...

$13,797,835 x 100 = 1,379,783,500 Potential Additional Shares

Then notice that one important word if you keep reading after that part that you are referring. That important word is... or ...at the end of that paragraph. This is the reason why I say "potential" additional shares because following that word... or ... that's listed under Page 21, Section 6.5, Item (b) is where it says a lot that leaves a lot of room for flexibility to deviate considering that there is an anti-dilution provision in place. This allows the stock to appreciate to provide the flexibility for positive deviations for a resolution to take place.

It first stated within that following paragraph that... Provided that the holder of the Allowed General Unsecured Claim provides Cash to the Reorganized Debtor on or before the Effective Date equal to not less than the Financing Amount, and subject to Section 5.2 of the Plan:...

Then this is where it starts to get very interesting for the better to say the least where it then says... (1) in accordance with section 1145(a)(1) of the Bankruptcy Code, in exchange for its Allowed General Unsecured Claim, and subject to the Leak Out Restriction, a Convertible Plan Note equal to the amount of the Allowed General Unsecured Claim; (2) a Secured Convertible Plan Note equal to the Financing Amount; and (3) one (1) Plan Warrant for each dollar of Financing Amount.

Consider this as an example: This means that if the price goes up to .30 per share, a Convertible Note to remedy the $13,797,835 can be issued which would only dilute BRTXQ to the tune of an extra 45,992,783 shares. The higher the share price goes, the less shares needed to resolve the matter and the contrary. Keep in mind too, Auctus is a friendly as they are friend and not foe. They know just how huge this can be since BRTXQ have FDA Phase II Approval for Clinical Trials for their drug BRTX-100:

https://clinicaltrials.gov/ct2/show/NCT04042844?term=brtx-100&draw=2&rank=1

This is huge for any stock, especially a penny stock. I don't recall the ticker, but there was another medical penny stock that last week had gone from its lows to hitting .90 per share all while having an Outstanding Shares (OS) of over 2 billion shares. Based on what someone informed me about who was aware of that stock, what we have here with BRTXQ is much better as BRTXQ is also much further along. I am aware of another stock that is trading on a major exchange at over $17.00+ per share that BRTXQ is a better investment than in my opinion which is a good comparison. I'll learn more about these comparisons and share more details later.

Let's say they decide to execute what's behind Door #3 from above and take one (1) Plan Warrant for each dollar of Financing Amount. That would equate to 13,797,835 warrants of which on Page 9 under Section 1.59, it confirms the Anti-dilution mechanism that is put in place regarding any warrants unless or until BRTXQ gets to the NASDAQ Capital Markets:

http://www.biorestorative.com/wp-content/uploads/2020/07/PLAN-OF-REORGANIZATION.pdf
The Plan Warrants shall include such anti-dilution provisions which are standard for common stock purchase warrants of this type, with the anti-dilution to be terminated upon the Reorganized Debtor’s consummating the listing of its common stock on the NASDAQ Capital Markets or another senior exchange.

Don't get me wrong, I do see what you are saying, but it is a worst case scenario since I think it is very evident that the common shares are going to be remaining intact. What I am saying is that this reorganization plan leaves plenty of room for a few best case scenarios too of which I'm more inclined to believe is what will be since I don't see Auctus cutting of their nose to spite their face.

Since Auctus is a partner with BRTXQ for this Joint Plan of Reorganization, they're not going to do anything to destroy themselves. It's in their best interest to make this huge. I think now it is time to start talking more about what BRTXQ is bringing to the table operationally so that investors can begin to see what Auctus sees for why they made the decision to save BRTXQ.

http://www.biorestorative.com/wp-content/uploads/2020/07/DISCLOSURE-STATEMENT-OF-REORGANIZATION.pdf

v/r
Sterling