In so many words the company is telling you they expect the stock to be in the 40-50 cent range.
Note 'subject to adjustment' - this means Reverse Split is going to happen.
From the recent 8-K...
'Pursuant to the Purchase Agreement, upon the satisfaction of all of the conditions to the Company's right to commence sales under the Purchase Agreement (the "Commencement"), LPC is initially purchasing $2,000,000 in shares of Common Stock at $0.605 per share. Thereafter, on any business day and as often as every other business day over the 24-month term of the Purchase Agreement, and up to an aggregate amount of an additional $23,000,000 (subject to certain limitations) in shares of Common Stock, the Company has the right, from time to time, at its sole discretion and subject to certain conditions to direct LPC to purchase up to 500,000 shares of Common Stock. The purchase price of shares of Common Stock pursuant to the Purchase Agreement will be based on prevailing market prices of Common Stock at the time of sales without any fixed discount, and the Company will control the timing and amount of any sales of Common Stock to LPC, but in no event will shares be sold to LPC on a day the Common Stock closing price is less than $0.40 per share, subject to adjustment. In addition, the Company may direct LPC to purchase additional amounts as accelerated purchases if on the date of a regular purchase the closing sale price of the Common Stock is not below $0.50 per share.'
Yes LPC purchased $2M at 60 cents a share BUT, they also were given 800,000 free shares.
Do the math and you see this 40-50 cent range (pre R/S) is more than likely.
that's not what I see at all.....actually quite the opposite...they won't sell the share below 40 cents...period....if it happens to drop that low, unless (and this is where "subject to adjustment" comes in) they decide to....would only happen if Z becomes desparate for funding....which they won't for a LONG time.
Would only happen if they become desperate for funding?
Lets see we have $2M divided by 60 cents = 3,300,000 shares
Now we add to that 800,000 free shares
This brings the total to 4,100,000 shares
Now we take $2M and divide by 4,100,000 shares and we get 49 cents