Posted On: 05/11/2014 7:58:40 AM
Post# of 5570
From the Annual Report:
Note 4. Convertible Debt
From April 2013 through June 2013, the Company issued convertible notes with an aggregate face value of $126,000. The notes mature one year from issuance, bear interest at an annual rate of 10%, and are convertible into common stock of the Company at the option of the holder at a conversion rate equal to 30% of the average of the lowest five closing trading prices of the Company’s common stock during the twenty trading days immediately preceding the conversion date with reset provisions on the conversion rate.
So these notes are maturing April 2014 through June 2014. At a 30% conversion rate on a share price of say 0.004 that’s 105m new shares being created in this period potentially if all the notes are converted. This effect will of course tend lower the share price, as indeed we’ve seen over the past month or so.
Note 4. Convertible Debt
From April 2013 through June 2013, the Company issued convertible notes with an aggregate face value of $126,000. The notes mature one year from issuance, bear interest at an annual rate of 10%, and are convertible into common stock of the Company at the option of the holder at a conversion rate equal to 30% of the average of the lowest five closing trading prices of the Company’s common stock during the twenty trading days immediately preceding the conversion date with reset provisions on the conversion rate.
So these notes are maturing April 2014 through June 2014. At a 30% conversion rate on a share price of say 0.004 that’s 105m new shares being created in this period potentially if all the notes are converted. This effect will of course tend lower the share price, as indeed we’ve seen over the past month or so.
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