Why would institutional investors pay more than the current price for Marley Coffee?
I don't know the exact details of the balance sheet, the situation is constantly changing under the fast growth pace, and the latest financials are from April.
What I do know is that institutional investors with intimate knowledge of the current business conditions at Marley Coffee were willing to pay 50 cents per-share in cash. Despite what the self proclaimed "experts" will say, heck, don't even listen to me, just answer this question to yourself....
Why would Ironridge put $2.5M on the line at 50 cents per-share unless they were confident of making a profit?
It's a big enough amount of stock that they couldn't dump it on the market without collapsing the share price. They know the only way they make a profit is if the fundamentals will support a higher price than 50 cents.
Ironridge is hardly an "institutional investor". Ironridge is a very small mezzanine lender to very small companies. Institutional investors are major insurance companies, pensions and mutual funds of multi-billion asset size. Not a single one will have any interest in JAMN. First by most charters they can't own more than 5% of a firm, so the firm must have a $2-3 billion dollar market cap minimum to make it worthwhile to follow. JAMN with its mighty $47 million market cap is not even on their radar screen. You guys are fooling yourselves with talk about an institutional investor buying or acquiring it. Just another example of the absolute nonsense posted here and why this board is so damn funny.
Hey, principletrade, you sad, pathetic little liar.
"Why would Ironridge put $2.5M on the line at 50 cents per-share unless they were confident of making a profit?"
Your reading comprehension skills are terrible! The 5 million shares are just a start. They'll be getting a 20% discount on the shares.
" From the date of the Stipulation until that number of consecutive trading days following the Issuance Date required for the aggregate trading volume of the Common Stock to exceed $50,000,000 (the “Calculation Period”), Ironridge will be entitled to that number of shares of Common Stock (the "Final Amount") with an aggregate value equal to the sum of (a)(i) 105% of the Claim Amount plus reasonable attorney fees and expenses, (ii) divided by 80% of the following: the closing price of the Common Stock on the trading day immediately preceding the date of entry of the Order, not to exceed the arithmetic average of the individual volume weighted average prices (“VWAPs”) of any five trading days during the Calculation Period, less $0.01 per share ("Share Price"); and (b) the sum of (i) the positive difference, if any, between (A) $1,358,299.08 divided by 80% of the average of the lowest five individual daily VWAPs during the Calculation Period, and (B) $1,358,299.08 divided by 80% of the average of the lowest five individual daily VWAPs during the period from May 24, 2013 to the date of entry of the Order, and (ii) the positive difference, if any, between (A) the sum of one and a half times the Initial Issuance, and (B) the number of shares otherwise owed pursuant to the foregoing."