Healthier Choices Mgmt Corp (HCMC)

[Inves_tor]

Could this be why for what happened today to $HCMC WHAT YOU THINK?:

HCMC or the “Company”) announces that it has executed an exchange agreement (the “Exchange Agreement”) with the holders of roughly 92% of its outstanding Series A warrants.

(THIS MIGHT BE WHY THE STOCK ACTED WAY IT DID. WHATS3YOUR THOUGHTS?)
On August 16, 2018, HCMC entered into an agreement with its largest Series A warrant holder, as well additional warrant holders, providing for the repurchase of Series A warrants. Under the Exchange Agreement, those Series A warrants (and underlying liability) are eliminated and replaced with Series B Convertible Preferred Stock (“Preferred Stock’). The Preferred Stock has conversion rights to a finite and definitive number of shares of common stock of HCMC, at a conversion price of $0.0001.

“Essentially, the company has successfully eliminated almost $50M of liability, in exchange for approximately $21M of preferred stock, exchangeable for $21M of HCMC common stock without any additional warrants or cash payment obligations. We believe that this trade, which has saved HCMC and its shareholders approximately $29M of potential dilution, will lead to the re-creation of shareholder value,” said Jeff Holman, CEO of HCMC.

Mr. Holman continued, “Over the past three years, HCMC has strengthened its management team, diversified its business operations, and significantly broadened its technology bandwidth via the issuance of 6 patents in the past 20 months. Our mission of bringing healthier choices to consumers will reach new heights as we launch our patented and patent pending quartz based cannabis and CBD vaping products. This liability restructuring allows HCMC to execute on its business plans with a view to generating significant shareholder value. The HCMC team would like to thank all involved for their efforts in bringing this matter to fruition.”


https://www.google.com/amp/s/markets.businessinsider.com/amp/news/HCMC-Enters-into-Agreement-to-Eliminate-49-7M-out-of-54-3M-of-its-Remaining-Warrant-Liability-1027468171