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Posted On: 01/14/2020 9:21:14 AM
Post# of 82676
The "unsecured convertible notes with adjustable conversion features" is the only category of convertibles that has changed at all in years. It is how the company has been financing operations for years. The other notes appear to be in friendly hands.
When a convertible note reaches the maturity date, the note holders convert into shares, but at a huge discount, and they sell because IMO it is a guaranteed profit . This is the financial mechanism that has kept the company going.
It has always been in the Q's
https://www.sec.gov/Archives/edgar/data/12855...or_10q.htm
During the nine months ended September 30, 2019, convertible notes for $792,000 were issued (see below), and convertible notes for $675,000 were converted into shares of the Company’s common stock.
At September 30, 2019, the balance of the convertible notes with adjustable conversion features was $812,000.
During the nine months ended September 30, 2019, the Company issued eleven convertible notes payable with adjustable conversion features to three lenders for aggregate proceeds of $792,000, bearing interest at 8% to 10% per annum, and maturing through September 2020. At the option of the holder, the notes are convertible into shares of common stock of the Company at a price per share discount of 58% to 61% of the average market price of the Company’s common stock, as defined, for 15 to 20 days preceding a conversion notice.
When a convertible note reaches the maturity date, the note holders convert into shares, but at a huge discount, and they sell because IMO it is a guaranteed profit . This is the financial mechanism that has kept the company going.
It has always been in the Q's
https://www.sec.gov/Archives/edgar/data/12855...or_10q.htm
During the nine months ended September 30, 2019, convertible notes for $792,000 were issued (see below), and convertible notes for $675,000 were converted into shares of the Company’s common stock.
At September 30, 2019, the balance of the convertible notes with adjustable conversion features was $812,000.
During the nine months ended September 30, 2019, the Company issued eleven convertible notes payable with adjustable conversion features to three lenders for aggregate proceeds of $792,000, bearing interest at 8% to 10% per annum, and maturing through September 2020. At the option of the holder, the notes are convertible into shares of common stock of the Company at a price per share discount of 58% to 61% of the average market price of the Company’s common stock, as defined, for 15 to 20 days preceding a conversion notice.
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