Oh, look! A new convertible!
Per the 10-K:
"Series A 15% Original Issue Discount Convertible Notes and Warrants
During the quarter ended December 31, 2013, the Company did a private offering of two tranches of convertible notes and warrants, under which it issued $283,648 of convertible promissory notes for consideration of $241,100, the difference between the proceeds from the notes and the principal amount consists of $42,548 of original issue discount. The notes are convertible at initial conversion prices ranging from $0.20 to $0.25 per share anytime after issuance thereby having an embedded beneficial conversion feature. The note holders were also issued market-related warrants for 170,354 in shares of common stock. The warrants have exercise prices that range from $0.40 to $0.60 and a 2-year term."
So CTTC paid $42,548 just to get to use $241,100? They paid 20% just to GET the loan??? How do I get in this business?
And on TOP of that, the convert is ALREADY in the money since it's convertible ANYTIME for 20-25 CENTS a share?!!!! In other words, CTTC, in effect, sold about one and a quarter MILLION shares at a DISCOUNT of around FIFTY PER CENT to the current trading price? Is that about right?
And don't you just LOVE how they call it "an embedded beneficial conversion feature"?
Yeah, right! Beneficial to the convert holders' bank accounts, all right!
Shareholders, on the other hand, appear to have something quite large and uncomfortable looking "embedded" in their rear ends! And to think CTTC didn't even offer to take them to dinner first! How rude!
Like I said before -- GLAD I don't own any shares!
