I know I said I would take a break, but I want to provide some insight into the shares we're seeing enter the market. A lot of folks want to call it a share selling scam, but most of the shares we are seeing can't possibly be KAVL and the management team, but rather legacy holders.
TL:DR - Based on my calculations KAVL has only added between 800k and 1.8M shares to the float (most likely closer to the lower end). The remaining 18-19M shares added to the float since last year and the whole reason we're seeing the stock under so much pressure is due to legacy insiders without a care in the world.
Through 11/6/2020 we saw a total of 4,918,056 added to the O/S.
3,674,056 were restricted shares to QuikFillRx per the agreement.
649,500 were given to 5 employees per their RSU agreement.
444,500 were given to Niraj/Eric per their RSU agreement
150,000 was given to Uptick Capital
Eric/Niraj would have had to file a form 4 if they sold. You will see in the form 4 shares being "sold" but those are for tax purposes since the RSU is categorized as income. Those "sold" shares are bought back by the company and retired. They probably never hit the market but rather just an accounting transfer. So we know the 444,500 is still being held.
That leaves a total of 799,500 shares that COULD HAVE entered the float from insiders/services. During that same period, through 11/6/2020 we saw 13,992,128 shares added to the unrestricted so more than 13M were from old insiders/shareholders.
The update on 2/2/2021 added 1,889,047 shares and 1,070,000 shares were added to the float.
I know exactly how the 1,889,047 shares were issued (488,500 to employees per their RSU agreements/bonuses, 1,000,000 to Inflection Partners, 62,157 to two attorneys, 188,391 to QuikFillRx and 149,999 I can't find a home for) but no matter which way I add up those issuances, I can't match the 1,070,000 added to the float. There was never an issuance for 70,000 shares that I can add to the 1,000,000 given to Inflection Partners, and without that 1,000,000 to Inflection, I'm left with 889,047 issued shares of which only 700k would be possibly freely traded. It is my opinion that Inflection shares were restricted and NOT added to the float.
The next update on 2/17 there was no change to the O/S, but 5,000,000 shares added to the float. I find it odd how perfect that number is considering we have never issued 5,000,000 to one person NOR do any of the individual issuances match that number. Looking through old filings from 2011, 2 seemingly related individuals each had 2,500,000 shares combined for the 5,000,000. No other calculation makes sense so I'm lumping this under old insiders.
3/8/2021 we saw 1,122,031 added to the O/S. 528,945 for employee RSUs, 597,136 for professional services and I'm missing a 4,050 share reduction somewhere. That same update showed an increase in the float of 24,000 shares. So again, we know all those shares issued were restricted and the 24,000 most likely is from legacy holders.
Lastly, the 2,510,000 shares issued on 3/22/2021 are all restricted as there was no change in the unrestricted total after this issuance. That includes the 2,010,000 shares for professional services and the 500,000 for Trending Equities Corp.
In conclusion, all those folks claiming that KAVL issued shares to insiders/pumpers for them to dump on us during the run up to $3 is nonsense. There is no proof of any wrongdoing by management, but rather the unfortunate fact that legacy insiders had millions of restricted shares that became freely traded once KAVL took over and those shares had value.
