China Food and Beverage Co (CHIF)

[Renegades17]

Question




Am I correct in my interpretation that CHIF obtained the options and intended to exercise them if Sosa won its lawsuit against Spotify and obtained a monetary reward? Why else would they issue notes in such a large amount (with an implied valuation of over $850mm for Sosa and PMR combined)?

Seems to me that CHIF was smart to structure the investment as an option contingent on a potentially lucrative outcome. It didn't pan out, so they walked away as they should.

In my view, Noch has no argument, but he's probably trying to angle for some shares so that he goes away. I hope the company fights this and gets a quick judgment in its favor.