Pervasip Corp (PVSP)

[Arthur]

BG, I think the FF lawyers slighly botched that clause.

If you compare with the text of Factor Fund other CD contract with Pervasip:
8-K

(i) The “Conversion Price” in effect on any Conversion Date shall be equal to 100% of the 45 Day VWAP. As used herein, the term “45 Day VWAP” shall mean and refer to the average of the five (5) lowest volume weighted average closing market prices for the Common Stock for the 45 trading days preceding conversion as posted on the OTCQB or on such US National Exchange upon which the Company may be listed.

That one was based on the five lowest prices within the last 45 trading days, no discount.
Of course, benefiting of any dip in the past is a great "discount" all in itself.

Now compare with the $665K CD clause:

(i) The “ Conversion Price ” in effect on any Conversion Date shall be equal to 60% of the 20 Day VWAP. As used herein, the term “ 20 Day VWAP ” shall mean and refer to the average of the lowest volume weighted average closing market price for the Common Stock for the 20 trading days preceding conversion as posted on the OTCQB or on such US National Exchange upon which the Company may be listed.

Notice the world price, singular ?
The clause might be interpreted in two ways:
1) As Sherman seems to do, use the average price of the last 20 trading days.
but the clause "lowest" has no sense in that context. There are no lowest if you average all 20.
2) Or, they meant to write the (1) lowest market price for the 20 trading days,
that would explain the singular. The average of 1 day is the lowest market price, that part of the cause is redundant.

Mathematically, there is only a slight difference between a volume-weighted average and a plain average, unless there are huge volume swings between the days at issue.

Trump stated that Factor Fund doesn't receive a discount. On the $2M debentures, they do not, but they receive an advantage that is tantamount to a discount, they benefit of the lowest share prices as the basis for the conversion price.
On the $665K, they benefit of both a 40% discount, and from the lowest recent price, although the clause is unclear.