Taking a sip at Keytone Dairy, page-263

A question on Class E performance shares "A VWAP over a period of 30 CONSECUTIVE days that exceeds $0.65"

Does that mean each consecutive trading day has to have a VWAP of $0.65 or higher, or that the mean average VWAP for 30 consecutive days qualifies? - i.e. a big VWAP day of 80 cents offsets a VWAP day of 64 cents? I may email the company and ask whether this milestone was already met in 2018.

The second milestone for class E is $50,000,000 revenue which should be met soon.

@Roger2828

Class E performance shares were issued in 2019 as a result of the Omniblend acquisition, so it seems most unlikely to me that their price milestone could be achieved using 2018 prices as a reference. With regard to the VWAP calculation, the way I understand it is that the whole 30-day period is taken as a reference, i.e. a VWAP above 65c is not required on every single day.

With regard to the 50m$ revenue hurdle: that is relative to Omniblend only, and sales from the Australian business totalled just under 30m$ during the first 9 months of FY2021 (April 2020 - December 2020). Therefore, in order to pass the 50m$ threshold, Omniblend would have to generate more than 20m$ during the March 2021 quarter, which doesn’t seem likely.

So, overall, I think the earliest date the Class E performance shares can convert will be after March 31st 2022, provided that Omniblend generates 50m$ in revenue in FY2022 (April 2021 - March 2022) and that the 65c price milestone is achieved in the mean time.

Cheers