Cash out this, fast than NK and his buddy!!!!!!!!!!!!
The Notes are also convertible from time to
time, at the election of the holders, into shares of the company’s common stock at a conversion
price of $1.00 per share. Warrants to purchase an aggregate of 27,594,000 shares of the
company’s common stock will be issued with the Notes and will have an initial exercise price of
$0.52 per share, representing a 50% premium to the closing bid price of the company’s common
stock on March 27, 2013. The Series A Warrants will have a term of two years from issuance
and will be exercisable beginning one year from issuance. The Series B Warrants to purchase
15,768,000 shares of Common Stock are subject to stockholder approval of the Tranche B Notes,
will have a term of two years from such stockholder approval and will be exercisable beginning
one year from such stockholder approval. If such approval is not obtained, such warrants will not be exercisable and will expire.
No one expects it goes beyond $7.8 so those warrants are useless. Also don't those warrant holders need to pay $7.8 per share to acquire the shares? If the price then drop after the exercise, don't they lose money? I am missing something here. How are warrant holders paid?