Posted On: 09/08/2016 4:31:25 PM
Post# of 417
TraderFan on this board from investorshub? This should answer your question.
" convertible into common stock at 50% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion"
Three lowest below then 50% applied:
(.0016+.0015+.0018)/3= .001633*50%= .0008166
They got essentially 16851020 shares and $6200 in interest, for a $38,500
38500-6200= $32300 needed to break even
32300/16851020= .001917
Thats why CFGN is sitting at .0020
Quote:
On November 25, 2015, the Company issued a convertible note to Tangiers Capital Group for $38,500 of cash consideration. The note bears interest at 12%, matures on November 25, 2016, and is convertible into common stock at 50% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion. The Company recorded a debt discount equal to $35,000 due to this conversion feature. The Company also recorded a $3,500 debt discount due to accrued interest required by the agreement to be accrued at the beginning of the note. The note had accrued interest of $4,620 as of May 31, 2016. The debt discounts had a balance at May 31, 2016 and August 31, 2015 of $19,675 and $0, respectively. The Company recorded debt discount amortization expense of $18,825 and $0 during the nine months ended May 31, 2016 and the year ended August 31, 2015, respectively.
" convertible into common stock at 50% of the lowest 3 closing market prices of the previous 20 trading days prior to conversion"
Three lowest below then 50% applied:
(.0016+.0015+.0018)/3= .001633*50%= .0008166
They got essentially 16851020 shares and $6200 in interest, for a $38,500
38500-6200= $32300 needed to break even
32300/16851020= .001917
Thats why CFGN is sitting at .0020
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