Thanks for your research, well done.
I have also poured over the 8K and S1 however came to this conclusion. Specific to MCLN or Southridge's right to take a "short" position, or have one taken for them;
The 8K is the agreement, and I would argue, requires each party to abide the conditions. No "short" positions allowed.
The S1 was a general statement and not specific to this agreement.
10% Ownership. I agree with your interpretation of the terms of the agreement. Southridge is limited to, (no greater than 9.99 %) 10% of the outstanding shares. I also suspect this point is obvious to both parties and "how" they will "take title" to stock as the deal unfolds will be legal and less than 10% to one individual or entity. They will get their shares.
My question's.
Why would MCLN dilute share structure when 180,000,000 shares could be purchased on the open market for a small percentage of the structured amount of this loan? The dilution will certainly affect the share price of Management's stock to the same degree as ours. Buy back stock?
Is management not concerned with share price, is their stock holdings not their "end game" any longer? Is their "end game" this loan?
Is Management so sure that this finical move will increase stock value to such a level, as to make this dilution irrelevant?
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AI
