Replies to post #4904 on Healthier Choices Mgmt Corp (HCMC)

[Deuce22]

I agree. The only way I can see that the warrants make sense is if the common shares appreciate above the strike price. VPCO seems to have at least two huge incentives to get it back up there, one is to avoid de-listing and the other is to give a return to investors who bought the units so they can get more cash when the warrants are exercised.

== All Opinion ==

[Leonitus]

Why are you unsure? It's explicit in the filings. It can't get any clearer. I'm buying as many as I can. See http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001493152-15-003207%2Etxt&FilePath=%5C2015%5C07%5C28%5C&CoName=VAPOR+CORP%2E&FormType=8-K&RcvdDate=7%2F28%2F2015&pdf=

Once exercisable, holders may exercise the Series A Warrants by paying the exercise price in cash or, in lieu of payment of the exercise price in cash by electing to receive a cash payment from the Company equal to the Black Scholes Value (as defined below) of the number of shares the holder elects to exercise, referred to herein as the “Black Scholes Payment”; provided, that the Company has discretion as to whether to deliver the Black Scholes Payment or, subject to meeting certain conditions, to deliver a number of shares of our common stock determined according to the following formula, referred to as the Cashless Exercise.

Total Shares = (A x B) / C

Where:

? Total Shares is the number of shares of common stock to be issued upon a Cashless Exercise

? A is the total number of shares of common stock with respect to which the Series A Warrant is then being exercised.

? B is the Black Scholes Value.

? C is the closing bid price of our common stock as of two trading days prior to the time of such exercise.

As defined in the Series A Warrants, “Black Scholes Value” was determined based on the Black Scholes Value of an option for one share of common stock of the Company at the date of the applicable Black Scholes Payment or Cashless Exercise, as such Black Scholes Value is determined, calculated using the Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg utilizing (i) an underlying price per share equal to the closing bid price of the common stock of the Company as of July 23, 2015 (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of the Series A Warrant as of the applicable Black Scholes Payment or Cashless Exercise, (iii) a strike price equal to the exercise price in effect at the time of the applicable Black Scholes Payment or Cashless Exercise, (iv) an expected volatility equal to 135% and (v) a remaining term of such option equal to five years (regardless of the actual remaining term of the Series A Warrant).