RE:Share price the effect of manipulation by
It all depends on the closing date. Here's my take on the loan:
Trichome $6M loan to Acreage Pharms
it’s a 10% annual interest rate loan, matures in 24 months. Money is to complete Phase 3 at Acreage Pharms. Invictus is the guarantor of the loan.
Acreage gets $3M at the closing date (Sept. 13, 2019) and another $3M two months after the closing date.
In addition to paying back the loan, Invictus must issue to Trichome some “Bonus Shares” and “Bonus Warrants” (that’s what they’re called in the term sheet agreement)
Shares: the number of shares is equal to 17% of loan amount (i.e. $1.02M) divided by $0.33, or the closing price of shares on Sept. 13th. That price was $0.25.
So, Invictus owes Trichome $1.02M/$0.25 = 4.08M shares.
Warrants: same as above, except 15% of loan amount - so 3.6M warrants, exercisable at $0.25 each.Invictus has 125 M stares outstanding, so this will dilute the shares by about 6%.
Did Trichome drive the price down? Maybe. It would be smart if they did. But if I am correct in reading that the closing date was Sept. 13, 2019, then it’s done and won’t continue to pressure Invictus’ share price.
Here's the Trichome press release:
https://www.globenewswire.com/news-release/2019/08/27/1907455/0/en/ACREAGE-PHARMS-LTD-SIGNS-NON-BINDING-TERM-SHEET-FOR-UP-TO-6-MILLION-FINANCING-FROM-TRICHOME-FINANCIAL.html