Mar. 31 at 5:06 PM
$MGRX I'll say it one more time.
Cohen repriced his options (
$2,133,000) at $.45 10 days ago. On the same day, he converted his
$100,000 promissory note to
$MGRX stock at a conversion price of
$1.785.
Currently, this conversion price is much higher than the actual trading price of MGRX (
$0.38). This means Cohen's trust is "losing" money on paper if they convert now, as they would be paying
$1.785 for a stock they could buy on the open market for
$0.38.
For his
$100,000 investment to become profitable as equity, the stock price needs to rise above
$1.785. This creates a massive incentive for the company to release positive news to drive the price back toward that
$2.00 range.
Lastly, Jacob Cohen is currently "locked in." If he were to sell a massive block of shares at
$0.46 ($.01 above the option price), it would likely crash the stock back down to
$0.30, making his remaining 1.5 million unvested options worthless. He wants a higher stock price to make a lot of money.
Do your own DD.
