king...small dilution was/is to set as settlement of liabilities owed by the Company to ASC in the aggregate amount of $766,288 (the "Claim Amount"), shares of common stock (the "Settlement Shares") as follows:
earlier agreement base of below...
(a) In one or more tranches as necessary, 3,740,000 shares of common stock (the "Initial Issuance") and an additional 200,000 shares of common stock as a settlement fee.
what changed....if stock below 90%
(c) If at any time during the valuation period the closing bid price of the Company's common stock is below 90% of the closing bid price on the day before an issuance date, the Company will immediately cause to be issued to ASC such additional shares as may be required to effect the purposes of the Stipulation.
here comes additional issue for Stipulation...
In connection with the settlement, during the six months ended February 28, 2014 the Company issued 8,576,000 shares of common stock to ASC in which gross proceeds of $60,060 were generated from the sale of the common shares. In connection with the transaction, ASC received fees of $19,739 and providing payments of $40,321 to settle outstanding vendor payables. Subsequent to February 28, 2014, the Company issued ASC 5,893,000 shares of common stock. The Company cannot reasonably estimate the amount of proceeds ASC expects to receive from the sale of these shares which be used to satisfy the liabilities. Thus, the Company accounts for the transaction as the shares are sold and the liabilities are settled. All amounts are included within accounts payable. As of February 28, 2014, all of the share issued prior to that date had been sold by ASC. Shares in which are held by ASC at each reporting period are accounted for as issued but not outstanding.
as it says above ASC already sold 8,576000 and are part of 48.5 mil o/s but the second amount of 5,89,3000 issue on feb 28 and company has no knowledge if been sold or not and that's already part of 48.5 mil o/s
basically combine ASC almost got around 18 mil shares for settlement and sold all or are dumping last lot of 5,89,3000 these days...
