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132,134,885 warrants, each entitling the holder to subscribe for 1 ordinary share in the Company at a price of 1p per share
That is listed on the Love Hemp main site under Investor relations.
And 2.5m shares have been sold in 100k or larger trades in the last 5 working days, but nothing to suggest they are warrants?
roleybirkin
we have debated about how up to date that 132m figure is......there has been some RNS which have announced the exchange of warrants for shares ...so...there has been warrant conversions ..
Just what the actual number of 1p warrants left is...up for debate.....132m still left..does seem ..high
27 January 2021 - 56,620,600 warrants @1p issued
3 February 2021 - 46,700,000 warrants @1p issued
3 November 2020 - 38,114,285 warrants @1p issued
Gives you a total of 141,434,885 issued
On 14 April 2021 notifications from warrant holders to exercise warrants over 10,100,000 which brings it close to the 132M figure quoted, I THINK there are more 1p warrants that were created technically by way of the share division in the 10 for 1 split that occured a while ago and the corresponding difference would tie into the disparity here.
Then on 17 May 2021 notifications from warrant holders to exercise warrants over 34,814,285 shares, I cannot see this has been factored into the figure at all so I suspect the website is off by 35mil or so shares. Since then we are 3 months from the last exercise, warrant holders dont convert then sell, they sell then convert. If they converted 100m warrants into shares THEN went on to sell the SP would tank the second the RNS landed and they run the risk of being stuck trying to clear the shares for years. Added to which you would have to TR1 your holding at that size. I would say there is every likelyhood that these recent share sells have been warrants, starting many months ago, all forward selling and all with zero risk or cost to the warrant holder who has pocketed minimum 1.2p per share sold pure profit.
Between 14th April and 17th May it looks like they were able to forward sell 34m shares, and if you look at the charts the volume that month was insane, its no wonder they took advantage of the hype, the media attention and focus and cleared so many. Since then volume is down and as a result SP has been dropping with the selling, but once they started there is zero indication that they stopped.
I think the figure on the website should be 97,320,600 and then from that we should deduct all the forward sold but as of yet un-exercised warrant shares. Did they manage to keep dumping 30m a month? 25m a month?
I think they are done, either for good or just for now, should be a notification for warrant exercise in the coming day and its either going to be all or a significant chunk of the outstanding 1p warrants.
JHFH,
Excellent post
....it is a disgrace that anyone should be allowed to "forward sell"
..I cant get my head around being able to sell shares that haven't even been created yet and that you have not paid for yet ....
It is if they can sell the shares and then with the money received pay 1p each for them, have them created and then keep the profit...
How is that even possible within a rule book??
Thanks Hemo, excellent post....
You know the question...what's the catch?
I guess it was the warrants!
Of course it also doesn't help that you are in effect doing a 1p fund raise ..without the usual fund raise costs
you don't exactly raise much money selling shares at a miserable...1p a piece
I know, it's like short selling but I guess it's not as bad because they have the guarantee of the shares in paper format so there is zero chance of not being able to settle the balance.
Also worth noting here, I blame myself for not picking up on the warrants before buying in, but really you can't blame the warrant holders for selling, they would be stupid to let them expire and not take the zero risk 200% profit.
Finally, they were issued in several chunks, IMO not all will be converted and dumped, some holders are going to hold for the higer prices we all know are coming.