I think they are exempt, but you need to confirm that. And so what if they are? It seems that those shares were provided to supportive insiders whom by definition, have to follow Rule 144, meaning when they convert, that stock is restricted. 6 month wait, then subject to further rules limiting what they can sell. But what my takeaway here is that those preferred holders will need to make a deal with an institutional lender in order to uplist. And those types of deals are usually further lock ups on the stock. I certainly won't care about them converting if we are on NASDAQ and trading in the twenties anyway.
Only shorters and flippers care so much about dilution, just like those death knell convertible notes at a discount to market. Its ONLY about the stock. Nothing about the company. In fact, I knew brokers that didn't care about the company, its management, its products, its market, as long as they can bury stock, they are happy. Thats the wrong investor attitude for this company. If you want fast plays, invest on cannabis stocks. If you want a real long term play, invest in something that is actually a sustainable business.
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