The mother of all rollbacks
Each share of Preferred Stock will, at the option of Java Group,
Inc., be either (1) convertible into said number of Purchaser's common stock to equal a fair market value of $3,000,000 (plus any accrued and unpaid dividends) at the time of conversion based upon the average prices of such shares during the five trading days preceding the date of Java Group, Inc.'s election, or (2) be redeemed sixty (60) months after closing for cash in the amount of $2,500,000
plus any accrued and unpaid dividends. Java Group, Inc. may convert the Preferred Stock into shares of Common Stock of Java Group, Inc. at any time after the date of issue; however if not converted prior to sixty (60) months after closing, Java Group, Inc. will be obligated to redeem said shares.
My notes: Due to their inability to finance even an office,
you are looking at option number one:
Jr will convert $3 million into a market cap of about $1.2 mill at say 15 cents to get a total of 28 million shares.
You then roll the sucker back 8 to one for a total of
3.5 million shares Jr and Stern will then own over 2/3rd
of the paper.
If your average is now 50c it will be $4.00
I would weigh your options at this time because these jokers are
setting up for the score. JR is behind the deal. You know what to
expect by now.
The stock will be easier to buy now but maybe not cheaper no one is sure what and when JR will move the stock to after the rollback.
I know that he will do whatever he has to do to finance this deal and get back into the business of selling mucho paper at controlled prices with a tight structure once again and a new story.
My opinion is that he will finance after rollback at $1.00
although the stock will trading higher. Time will tell.
Just, be aware and watch out below! |
