Codie. Don't forget the soothsayer Dr. Frost!
or CEO Brad buying at $12 and $13 on the open market while granting himself millions of shares for free in his compensation package.
Which brings us back to a great question:
CEO Ryan has already repriced his convertible debt exercise price from $2.30 down to $1.8x
With the letter from his lawyer in the public domain now stating the likelihood of another downround pricing next month as the due date on the debt is November 5th I think. Just about 30 days from now.
How low will CEO Ryan be forced to reprice?
10m shares of overhang and dilution that "longs" were cheering stating $2.30 is the absolute bottom has clearly been pulled out from under them.
I suspect the new exercise price will be significantly below $1.00 which best case scenario for longs, allows CEO Ryan to convert to 60% equity for basically no cost as he continues to recoup his investment with the $3m in annual interest payments @ 15% interest. He is clearly paying his salary, cash bonus and interest payments to himself with the proceeds from theft of product from suppliers which he sells into the retailers and doesn't pay the supplier like he did with Capstone and now Bakery Barn.
Ryan paid himself over $600K in interest in Q2 '17 according to the 10-Q so he didn't roll the debt interest over. He is taking the cash out while he can.
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