Genius Group Limited (GNS)

[TenKay]

Let’s unpack what that means…

That is the stock they are paying back in cash…which was always their prerogative under the note anyways.

But since they are operationally cashflow negative, all it means is they will have to replace that cash with further financing…which means more equity sales or convertible debt…

Hence this element to the settlement:

The Parties will invest in the next bona-fide subsequent offering conducted by the Company, at a range of between $3.7 million to $6.2 million based on the Company’s current share price, the timing of such future raise to be at the Company’s discretion and the final amount within the range at the Parties’ discretion.

And I might note that the share price has gone down since the announcement of that settlement...by 40%! Even the market was not all that impressed.