Mr. Richardson exercises another 4,000,000 $0.05 warrantsHello fellow PLAN shareholders,
The Company announced to day that Mr. Richardson, the largest single PLAN shareholder, has exercised 4,000,000 warrants at $0.05 per share to acquire an additional 4,000,000 shares. I thought it would be helpful to review and update Mr. Richardson's holdings.
Prior to this transaction, Mr. Richardson held:
Common shares: 20,448,499
Warrants 9,497,222
The 20,448,499 shares represented 23.156% of the 88,309,087 shares then issued and outstanding.
Following the just announced transaction, Mr. Richardson now holds:
Common shares: 24,448,499
Warrants 5,497,222
The 24,448,499 shares represented 26.445% of the 92,451,151 shares then issued and outstanding.
This means that Mr. Richardson acquired an additional 3.29% interest in the Company in return for the payment of $200,000. This transaction therefore implicitly values the Company at $6,079,027, versus the market value this morning of $27,735,345 (92,451,151 shares at $0.30).
I believe it is worth noting here that Mr. Richardson had been granted the 4,000,000 $0.05 warrants as compensation for providing a "personal guarantee" for a $144,000 bank loan taken out by the Company in 2021, along with another 2,000,000 $0.05 warrants as compensation for providing another "personal guarantee" for a $56,000 bank loan also taken out by the Company in 2021. The 2,000,000 $0.05 warrants had been excerised prior to the transaction reported today.
As of January 31, 2022, $28,152 of the combined $200,000 loan had been repaid, thereby reducing Mr. Richardson's potential guarantee exposure to $171,848. Given the $200,000 of cash received for the newly issued 4,000,000 shares, the Company would have the option to pay off any remaining balance of the bank loans, completely eliminating any financial risk to Mr. Richardson. It will be interesting to see if this is indeed what the Company does with the "unexpected" windfall cash flow received on May 18, 2022.
Cheers,
S.