A few months ago I was speculating that if anythin

A few months ago I was speculating that if anything happened with $ATRN it would be around the 31st of this month. This 8k attached and the fact that they are now a pink changed things since I was really digging into $ATRN on the initial run at the beginning of the year.

I'll spend some time on it tonight though and get back to you. I have a decent amount of freebies I'm going long with, if there is a buyout, I'm wondering if it can happen at anytime seeing they defaulted and are now listed as a pink.

On May 31, 2011, Atrinsic, Inc. (“Company,” “we,” “our,” or “us&rdquo and certain investors (the “Buyers&rdquo entered into a Securities Purchase Agreement (the “Purchase Agreement&rdquo .  Pursuant to the terms of the Purchase Agreement, we sold to the Buyers certain secured convertible notes in the aggregate original principal amount of $5,813,500 (the “Notes&rdquo as well as certain warrants to purchase shares of our common stock.   Also on May 31, 2011, we and our subsidiaries, New Motion Mobile, Inc. and Traffix, Inc. entered into a security agreement (“Security Agreement&rdquo with the Buyers pursuant to which we granted each of the Buyers a security interest in substantially all of our assets securing our obligations under the Notes.  In addition, New Motion Mobile, Inc. and Traffix, Inc. executed guaranties with each Buyer pursuant to which such subsidiaries guarantee our obligations under the Notes.

 

We are required to repay the Notes in six equal monthly installments commencing on December 31, 2011 and ending on May 31, 2012, either in cash or in shares of our common stock. With respect to the payment installment due on December 31, 2011, we were required to deliver a notice on November 30, 2011, stating the amount of principal that will be repaid in cash and the amount that will be repaid by delivery of shares of our common stock.  We did not deliver such notice, and thus, pursuant to the terms of the Notes, we have been deemed to elect to pay the applicable installment by delivery of shares of our common stock.  As to the repayment of the installment by delivery of shares, the Notes include a condition relating to the minimum dollar trading volume that must be maintained in our common stock during the twenty day period preceding the required installment date notice.  Failure of our common stock to maintain this trading volume is referred to in the Notes as a “Dollar Failure.”  A Dollar Failure has occurred and the Company is now in default under the Notes.

 

As a result of the event of default caused by the Dollar Failure (along with any other event of default that may have occurred under the Notes), each Buyer may require us to redeem its Note in cash at the greater of up to 110% of the unconverted principal amount or 110% of the greatest equity value of the shares of common stock underlying the Notes from the date of the default until the redemption is completed.  To date, none of the Buyers have exercised this remedy.  In addition, as a result of the occurrence of the event of default, the Notes now bear interest at the default interest rate of 18% per annum and will bear interest at such rate until all events of default are subsequently cured.  Further, as a result of the occurrence of the event of default, each of the Buyers may exercise their rights to foreclose upon the Company’s assets pledged as collateral under the Security Agreement.

http://www.sec.gov/Archives/edgar/data/102289...517_8k.htm

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