Here's another example, of course if the notes go past the 180 days the Asher and KBM make several times this in proft between the shorting and conversions.
ITEM 8.01. OTHER EVENTS
On July 30, 2013, the company issued a Prepayment Notice to Asher Enterprises, Inc. that stated:
Pursuant to Section 1.9 of the Convertible Promissory Note dated February 4, 2013 with Asher Enterprises, Inc. in the principal amount of $42,500 (the “Note”), please be advised that Minerco Resources, Inc. (the “Company”) is exercising its right, on not less than three (3) trading days prior written notice to you, to prepay the outstanding principal and accrued interest on the Note in full. This prepayment notice is being delivered to you as the holder of the Note at your registered address. This letter shall serve as written notice of the prepayment of the Note as delivered to you in accordance with Section 4.2 of the Note.
We acknowledge and agree that on or before August 3, 2013, the optional prepayment date, we will make payment to your order of an amount equal to 175% multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) of the Note. All capitalized terms have the meaning set forth in the Note.
The foregoing description of the Prepayment Notice is qualified in its entirety by reference to the full text of the Prepayment Notice, attached as Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission and incorporated herein by reference.
On August 1, 2013, the company prepaid the Note, including accrued interest and prepayment penalties, in the amount of $75,846.78 from cash on hand in the form of a bank wire transfer to Asher Enterprises, Inc.
All terms and descriptions have the meaning set forth in the Convertible Promissory Note, dated February 4, 2013, and are incorporated herein by reference.
