just leery of this type of financing.
if ghs is "excited to invest", then why do they need a 30% discount to do so?
deal to purchase $10 million of stock could translate into share sales to ghs of between 500 million shares at a $0.02 pps down to as "little" as 200 million shares at a $0.05 pps.
the convertible note which will be "retired" in only in the principal amount of $78,500 and it is due on March 5, 2022 in an amount to be paid of $86,350. The holder has the right to convert the note to stock at a 40% discount in lieu of surrender.
on april 8, 2021 (just last month!) ghs was issued 400 shares of class D preferred stock in exchange for $427,600. additionally, ghs was issued warrants to purchase 40 MILLION shares of stock for a $0.001 pps. that's approaching a 20x return in around 7 weeks!
i would feel more comfortable with this type of deal if it included some type of lock up period (6 months maybe). ghs is already getting "paid" for a holding risk by getting a 30% discount it has to purchase from a "put" by the company so it would only seem prudent to prevent ghs from shorting/dumping/optioning etc the shares they purchase in that $10 million deal.
why as there been no projection from the company about the revenue stream it will receive from the aum for the etf? seems like something should have been put out since the launch at least stating how many "creation units" were sold leading up to the launch.
i'm holding 500k shares, so while not as many as some of you, it's enough to be concerned about this type of "financing" and what that might mean for the whipsawing of the stock price as ghs "manages" its shares.
probably don't need to ask anything beyond "is ghs a pump and dump company or a longer term holder of the stock it purchases?"
time will tell on that but i for one would have liked to see a lock up period when the company does this type of deal.
