Blum Holdings Inc (BLMH)

[Demar]

From the press release:

"Under the terms of the convertible debenture agreement, the investor may convert their debentures at any time at a price equal to 90% of the 20 day VWAP of the Company's Common stock in the period preceding February 5, 2014, subject to adjustment in the event of dilutive issuances or events of defaults. The debentures are being issued at an original issue discount of 5% and will accrue interest at the rate of 12%. Additionally, the investor will receive a warrant to purchase a number of shares equal to 50% of the shares underlying the debenture, exercisable at a price equal to 90% of the 20 day VWAP of the Company's Common stock in the period preceding February 5, 2014 for a period of 5 years, subject to further adjustment therein. The Debentures bear an 18 month maturity from the time they are issued and may be retired in shares of the Company's common stock subject to certain terms and conditions."


The language is a bit confusing. Not sure if the "20 day VWAP" is fixed as of "February 5, 2014" or if it rolls forward. Will know more once they file.