The loan costs 10% interest up front and is a lend

The loan costs 10% interest up front and is a lender purchase agreement.
It appears to me that the shares put in reserve are far in excess of what may be needed for possible conversion of this loan but they also have to be sufficient to cover the SEC form 4s that will soon follow. More dilution.

From the 8K report:

"The Conversion Price shall be equal to 62% multiplied by the Market Price, as defined. The Market Price shall be equal to the lowest trading price of the Registrant’s common stock on the OTC Pink during the twenty-five (25) trading-day period ending one trading day prior to the date of conversion by the Holder. The Holder anticipates that upon any conversion, the shares of stock it receives from the Registrant will be freely tradable in reliance on an exemption from registration under Rule 144 of the U.S. Securities and Exchange Commission.

These notes may be prepaid during the first six months the notes are outstanding by paying a prepayment penalty 50%. The Company has reserved 100,000,000 shares of its unissued common stock for potential conversion of the convertible note."