The Convertible Note Purchase Agreement retails friend or foe?How will the Convertible Note Holders be affected if HOLO does a reverse stock split, that should be the question! What is the reason for not doing a straight equity offering? Is it because the institutional market will not buy the stock for the fear of a R/S! Tute Investors lined up to buy the notes because if Microcloud Hologram does a reverse stock split, the notes can still buy the same dollar amount of stock without being diluted, if they buy the stock the dollar amount gets diluted.I think that retail got ….. into this trade, thus holding the bag. I hope I’m wrong for the sake of retail that owns a large chunk of the stock…the big red flag; while institutions own 1% O/S, retail owns 99% O/S. The end result the company banks 50M , the institutions don’t get diluted , retail holders get diluted & they pay for this venture. CAGR is negative, FCF negative, 66M cash, 2.4 M debt. Now keep in mind that HOLO has issued several CNPA’s dating back to 07/23/23 and I believe that those notes are being exercised & this is the reason for the most recent stock slide. Finviz.com has the O/S at 82M, FF 77M , SI 7.4M
Not Financial Advice
