TSXV:SUGR.W.H - Post by User
Comment by
miscstuffon Jun 23, 2020 7:59am
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Post# 31179717
RE:Insider ownership is large here
RE:Insider ownership is large here
Newguy, I used to think that you were just keen on SUGR, but now I see that you are delusional. Any management can make really bad decisions but this post isn't about whether management should have bought the warrants in the first place or sold them when they went up. Selling the warrants probably would have tanked the stock price.
I'm gointg to try to explain to you how desperate this last debenture deal is. It's a Hali Mary and I truly hope we live to fight another day. Maybe others on this board will see the light even if you don't.
The debenture deal is: $1000 for a 12% interest note plus 20,000 warrants. Here is what is happening. Buy the debenture for $1000, convert it immediately to 20,000 shares @ .05 and win 3 years interest @12% which is $360. If you don't think the shares are worth more that .045 sell them on the open market. (Any guesses yet as to why the dumping?) You are left with 20,000 warrants and the $360 interest plus the $900 from selling the shares, which equals $1260. So the for your initial outlay of $1000, the company has just paid you $260 to accept 20,000 free warrants exercisable @ .05. You now have no money on the table. It's in your pocket.
Anyone with these warrants can start shorting the shares as low as 5 cents and be completely protected. If they get caught with gap up surprise they simply exercise the warrants.
And what did SUGR receive for your $1000 investment?
$1000 - $360 - commission to Mackie (6%-8%) = about $570.00. A tough was to fill the company coffers.