Replies to post #4879 on CV Sciences Inc (CVSI)

[Det_Robert_Thorne]

Not for awhile. Four more portions to go.

Per the recent 10-Q, the notes were issued in several tranches (portions) between May 16 and Oct 1. Here's how they're described on page 14:

On May 19, 2015 (the “Closing Date”), the Company entered into a Securities Purchase Agreement (“SPA”) with an investment group (collectively, the “Investor”) pursuant to which the Investor committed to lend to the Company up to $6,500,000, deliverable in five tranches (the “Financing”). The Company’s obligations under the Financing are secured by substantially all of the Company’s assets. On the Closing Date, the Company issued to the Investor a 10% Senior Secured Promissory Note (the “Initial Note”) in the principal amount of $510,000, in exchange for payment by the Investor of the total sum of $500,000. The principal sum of the Initial Note reflects the amount invested, plus a 2% Original Issue Discount (“OID”). On June 12, 2015, the Company issued to the Investor a promissory note for the second tranche of the Financing in the principal amount of $510,000, in exchange for payment by the Investor of the total sum of $500,000 (“Note 2”). The principal sum of Note 2 reflects the amount invested, plus a 2% OID. On July 24, 2015, the Company issued to the Investor a promissory note for the third tranche in the principal amount of $510,000, in exchange for payment by the Investor of the total sum of $500,000 (“Note 3”). The principal sum of Note 3 reflects the amount invested, plus a 2% OID.

On September 16, 2015, the Company and the Investor entered into an Amendment No. 1 to the SPA (the “Amendment”) pursuant to which the parties amended the terms of the fourth tranche of funding to provide that as of the date of the Amendment, the Investor is irrevocably bound to fund the fourth tranche of the Financing and that such tranche shall have a conversion price equal to 60% of the lowest traded price in the 30 days prior to conversion, as further discussed below. The parties further agreed that the fourth tranche would be broken into two sub-tranches – each in the amount of $250,000. Pursuant to the Financing, on September 16, 2015, and pursuant to the terms of the SPA, the Company issued to the Investor a promissory note for the first half of the fourth tranche in the principal amount of $255,000, in exchange for payment by the Investor of the total sum of $250,000 (“Note 4”). The principal sum of Note 4 reflects the amount invested, plus a 2% OID. The Investors agreed to fund the additional $250,000 of the fourth tranche on or prior to October 1, 2015, subject to the equity conditions, discussed below.

http://www.sec.gov/Archives/edgar/data/1510964/000101968715004130/cannavest_10q-093015.htm

So there are four tranches of $510K each, with the fourth split into two parts, totalling $2.04M. Since they talk about a total of more than $6m, it's possible there will be future tranches.

Each portion (or subportion) is eligible for conversion six months after its issued.

#1 $510K May 19 note became eligible on Nov 19

#2 $510K June 12 note becomes eligible on Dec 12

#3 $510K July 24 note becomes eligible on Jan 24, 2016

#4A $255K Sept 16 note is eligible on March 16, 2016

#4B $255K Oct 1 note hits eligibility on April 1, 2016

So it's probable that except for February, 2016, new conversions will hit CANV every month, for the next five months.