Seed RNS9 Dec 2019 12:15
Operation Fear is a nasty term for something else but there is another one in play right here at ZOE.
As we have seen over the past few weeks an interested party (probably 1 or 2 people) has been posting the same Warrant information, under multiple ID’s, from a 2015 RNS regarding the former CEO Robert Price’s 23 million share warrants excisable at 5p. this means, in theory that Mr price has the option to buy up to 23 million shares at 5p and then sell them again at the current or a higher SP, thus turning a profit and dragging the SP down whilst increasing the number of shares in issue. The upside would be cash coming into the company coffers at the 5p price so if 10 million were excised then the company would receive £500,000 for instance.
The warrants expire at the end of March and a certain GGG has used this speculate that the SP will remain in a 5-7p range until that time. Other posters have speculated a while back that we would never produce any CBD or sell any seeds, or indeed that producing high-quality feminized hemp seed was easy and anyone could do it. Clearly it is not, and they can’t.
So, it seems reasonable for the SP to get stuck at this level, right?
I think not. We had a great update on October 4th showing over a £ million in the bank and trumpeting a big new deal with Mr Checkout. Sales revenue up to 30th September was very small though at 36,000. The websites selling product direct were not live and although 67 stores were stocking Chill product at the end of the quarter, during most of that period the number was considerably less.
A certain ‘kemche’ on the ADVFN board has posted some fantasy-nonsense maths showing the company running out of money any time soon. He has deducted our $500,000 loan facility from the bank balance for starters (!) and factored in no revenue from the 8 East Denver wells we still receive 7.5% from until such time as they and other historic Oil & Gas assets are sold. That sale will more than cover the loan and may well produce a good cash boost to us. If you are on ADVFN why not stick it to him. It would not be hard!!
In the meantime, we are about….and here I have to write hopefully… we are about to hopefully produce our first crop of seeds from the indoor facility and this news WILL be the trigger for jump in the SP. This may allow some warrants to be moved as alluded to above but Robert Price, who let’s not forget has 10 million shares too, will not want to play the warrant game at 7p.
So, if you are worried about entering here then I think you are mistaken. If you want to enter at 6.8 and 6.7 etc then of course that would be great and I am sure there are a whole raft of buy orders set at these levels but it’s a gamble as the ‘Seed RNS’ that will come soon will require you to rub those out. I actually think any buy under 9p is going to be a nice one in the short to medium term and a bag in the longer (Q2 2020) term.
.... tbc
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