BlockQuarry Corp (BLQC)

[loanranger]

"they just issued a series b shares for $150,000 convertible at 3 cents."

Help me out. This is what I see:
"Series B Convertible Preferred Stock
On December 10, 2020, The Company designated 10,000,000 Shares of Series B Convertible Preferred Stock, with
a par value of $0.001 per share. Each share of Series B Convertible Preferred Stock is convertible into 3 shares of common stock after being held for one year, and contains a limitation where the holder can convert a maximum of 12.5% of the original Series B issuance shares in any given quarter. in December 31, 2020, the Company received $100,000 towards a total subscription of $150,000 for 1,400,000 shares of the Series B Convertible Preferred Stock.
The remaining $50,000 was received in January 2021, and the Series B shares were issued on February 25, 2021."


So they got $150K for 1.4M shares of preferred....convertible into 4.2M common in a year....so they paid $.093333 for the preferred.
That's not quite the same as "they just issued a series b shares for $150,000 convertible at 3 cents". They get 3 common for one preferred in a year regardless of the market price of the common at the time. Then they can sell that common.
At today's price the common would be worth over $2M. Not a shabby return on a $150K investment. Shocking actually, if it wasn't an AP deal.


So why did this Rosen guy put up $5M convertible at $1.50?