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Re: GW Pharma post# 347

Thursday, 07/26/2012 10:01:20 AM

Thursday, July 26, 2012 10:01:20 AM

Post# of 529
OK, now I understand your q better.
But first this, the (PP) Private Placement is not a loan, its an investment opportunity, yet the end result is more than 3 mil dilution.

When OPL engaged TCA (for that $5 mil revolving (LOC) Line Of Credit, they had to pay them 500k in shares, so the OS is increased by so much, and now 3 mil + the same amount in Warrants. So somewhere down the line investors who participated in the PP will have the opportunity to buy shares at 0.35, no matter how high the price is then, for the equal amount they have bought into this PP. Lets imagine that next year this time around the SP is at $1.4 they'll be able to buy Warrant shares at 0.35 --> the money goes to OPL.

Lets say investor A bought 200k shares in this PP, then they'll have the chance of buying that same amount at 0.35, and he can sell at $1.4 and bank his profits. Although there can be a holding period of the moment they purchased their 0.35 Warrants to the moment they sell in the market, not sure about that one...

To calculate the worth of your shares when there is a buy-out one has to divide the purchase price by the OS or the (FD) Fully Diluted share structure. This means all the outstanding options and warrants as if they were fully issued. Which is 125 mil. Also here I'm not completely sure if they calculate it with the OS or the FD, but I think its the OS.

So lets assume the OS is at 100 mil & OPL gets bought out for $1 billion, that would equate to $10/share x the amount of shares you own = $$$ in da bank! lol

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