"those are shares to be “REGISTERED”. They will only be used if Kim can’t payback the loan and the debentures convert to shares"
my take on the financing is that what kim is doing is essentially a shelf registration...and that usually means that all those shares are registered and immediately dilutive...even if not sold...and even if they are not immediately dilutive, most investors, hedge funds look at those shares as if they will all eventually be diluted...because they generally are...
kim is borrowing $4 mil... at .16 pps, that takes 25 mil shares to cover...if you add the other $1 mil that was borrowed, it takes 31.25 mil to cover that $5 mil...if the pps rises to .50, it would take 10 mil shares to cover that $5 mil...
kim is registering 200 mil shares...seems like a hellofa overkill...kim is taking advantage of the need to do a shelf registration by having a ton of leftover shares he can sell from for more cash...and he will be able to sell those shares quickly and easily without much notice to anyone...
and i dont have a problem with that...i have said kim needs to get his hands on some money and i dont care if he dilutes, begs, borrows or steals it...
well, hes borrowing it...and under the circumstances, its really not a bad deal...
i said he should go for about $3 mil cash...he doing $4 mil...close enough for me...
i said he needs to forget the offering, r/s and up list until it makes more sense to do it...from what i can tell, thats EXACTLY what he is doing...
frankly, it appears that kim is doing EVERYTHING i wanted him to do...imagine that?...lol
i havent been this positive about the direction of kblb in a very long time...but i am going contain my excitement until i see what actually takes place...
this amount of dilution can make the pps drop...dont kid yourself...its a freakin ton of dilution...the o/s shares are at 854 mil and the dilution is right around 24%...
still, the dilution does not have to happen right away and kblb will have the money they need to get going...and any positive news without the burden of the offering and r/s should be far more impactful...
kim needs to put out a pr prior to market opening on Mon that clearly states that the offering, r/s and up list have been terminated, put on hold or temporarily suspended until such time as company and market conditions improve to a point where they become a more viable option...
and it wouldnt hurt to put out a decent pr on tues either...
in short, im currently a fairly happy camper...
AI
