The company currently owes Trillium $1m plus interest on a short term loan from March 2021. It has been extended several times and is currently due 3/31.
The December Exchange Agreement is already a done deal. It's in the books. History. The agreement was made. When anyone just throws against the wall that Ray will renegotiate that deal, there is simply no foundation for that speculation. And that Exchange Agreement WAS the renegotiation of the 4 convertible notes totalling just under $4m. The debt is gone. In Exchange, Trillium and 3a received company equity in the form of around 190 preferred shares each. Trillium and 3a OWN those shares right now. That was the deal.
Every single one of those shares is convertible at the sole discretion of Trillium and 3a to around 6 million common shares. There are 2 limitations. They can't own more than 9.9% of the OS at a time, and they obviously can't convert past the AS.
Since Trillium currently has 59m shares, they could convert 1 preferred share for 6m more commons to be just under the 10% limit at 65m OS. But holding those commons does them no good. Once the lockout period ends, they will sell away, just like before. If they average 2 cents selling 65m shares, they pocket $1.3m. Afterwards they are free and clear to convert another 9.9%. Yes, another 65m. It would only take 11 of their preferred shares. That would raise the OS to 720m. Trillium can start selling again to make another $1.3m. That's $2.6m in their pocket on $2m in loans. But don't forget, they ALREADY made millions selling last summer. Great deal for Trillium, huh?
But, they wouldn't be done yet if AS stays at 800m. With 720m OS, they could convert 12 more preferred shares for 72m commons. Raises the OS to 792m. If anyone thinks they will still be averaging 2 cents a share after those conversions up to 792m OS, well, ok I guess. That's another $1.44m.
I suppose if the company never raises the AS again, that would stymie Trillium who could only convert 1 more preferred for old times sake. And then everyone lives happily ever after.
This isn't FUD. It isn't me creating these problems. The company already did the deal. Trillium and 3a already have the shares. Trillium has already converted and sold millions and millions. The stock price reflects these facts, not the posts from one person on an ihub board followed by 300 people. My Goodness!
