The convertible note is the shares being bought no
Post# of 154102
(Total Views: 306)
Posted On: 05/21/2019 9:48:29 AM
The convertible note is the shares being bought now. I'm not sure how they still have shares, because they have been selling constantly for a couple months now. You would think the company would have just gave them the 350k money payment. It might be better to get these guys off l2. They seem to have a lot of hidden fees, 10% here, 15% there. The original note was 5.7M, but the company only got $5M. Adding the 6 months interest, they seemed to convert just the interest the first couple of month and the balance was not decreasing... loan sharks. These guys are sleazy. Also, there seems to be a provision with the new note where they can convert all at 50c.
Quote:
The Investor may convert all or any part the outstanding balance of the Note into shares of Common Stock at an initial conversion price of $0.50 per share, at any time after six months from the issue date upon five trading days’ notice, subject to certain adjustments and ownership limitations specified in the Note. In addition to standard anti-dilution adjustments, the conversion price of the Note is subject to full-ratchet anti-dilution protection, pursuant to which the conversion price will be automatically reduced to equal the effective price per share in any offering by the Company of equity securities that has been registered under the Securities Act of 1933, as amended. The Note provides for liquidated damages upon failure to deliver Common Stock within specified timeframes.
The Investor may redeem any portion of the Note, at any time after six months from the issue date upon five trading days’ notice, subject to a maximum monthly redemption amount of $350,000. The Note allows the Company to satisfy its redemption obligations in shares of Common Stock, in addition to in cash, with the shares of Common Stock valued at a 15% discount to the lowest bid price within the 20 trading days immediately preceding any redemption notice to the Company. The Company may prepay the outstanding balance of the Note, in part or in full, at a 15% premium to par value, at any time upon five trading days’ notice.
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