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loanranger

05/09/19 6:34 AM

#262547 RE: noretreat #262541

"Wouldn’t item ii in the alternative purchase price calculations offer the mfo a pretty good price?"

Here's the pricing description from the 10-Q again (I haven't re-read the agreement itself but I assume it is consistent):
"Each share of preferred stock has an initial stated value of $1,080 and may be converted at any time at the holder’s option into shares of the Company’s common stock at a conversion price equal of the lower of (i) $0.32 per share and (ii) 85% of the lowest volume weighted average price of the Company’s common stock on a trading day during the ten trading days prior to and ending on, and including, the conversion date."

The initial closing of a share sale under the MFO agreement occurred on or around 10/9/18. The closing share price has been under $.32 (way under) every day since then until two days ago. So every conversion of Preferred has been under (ii) above.

I'm afraid that your point is lost on me. Why would this happen?
" Potentially big $ in mfo conversions. ? "


A refresher:
MFO holds warrants.
Warrants can be exercised to buy Preferred with a stated value above par at a price which is less than par.
Preferred can be converted into common at a discount to the market (whether under (i) or (ii), which are contingent on market price).