American Green Inc (ERBB)

[IBurnPurpleKush]

2,905,313,180 CONVERTED AT 0.00060014459! ALL THOSE SHARES RETIRED $1,743,608 DOLLARS WORTH OF DEBENTURE DEBT!

x= the amount of $$$ they retired.

y= the amount of shares that were issued.

z= the PPS the debenture debt holders converted at.

x ÷ y = z

(x)$1,743,608 divided by (y)2,905,313,180 = (z)0.00060014459

so for the past 2 or 3 years they have converted almost 3,000,000,000 SHARES at around the average pps of 0.0006

This is not the only red flag here. I believe in the end the truth will be revealed. stephan said no dilution? this is so diluted its in a death spiral. dont forget they still have over 1,000,000 more dollars that will convert at the 18 month or 360 day low with a 50 percent discount.

370,895,682+
450,000,000+
216,514,545+
181,250,000+
625,000,000+
635,000,000+
220,238,267+
206,414,686

=2,905,313,180 shares

265,191+
1,008+
115,553+
310,082+
39,343+
314,700+
29,050+
85,410+
14,278+
117,500+
211,396+
36,104+
203,993

=$1,743,608

GO TO PAGE 12-17.

https://www.otcmarkets.com/financialReportViewer?symbol=ERBB&id=120695

During the quarter ended June 30, 2012, a total of 206,414,686 common shares were issued in settlement of
$265,191 of principal and $1,008 of accrued interest on three outstanding debentures of the Company.

(265,191 + 1,008) ÷ 206,414,686 = 0.00128963207

During the quarter ended September 30, 2012, a total of 220,238,267 common shares were issued in settlement of
$115,553 of principal and accrued interest on four debentures of the Company.

115,553 ÷ 220,238,267 = 0.00052467267

During the quarter ended December 31, 2012, a total of 635,000,000 common shares were issued in settlement of
$310,082 of principal and $39,343 of accrued interest on four outstanding debentures of the Company resulting in one
of the debentures being paid in full.

(310,082 + 39,343) ÷ 635,000,000 = 0.00055027559


During the quarter ended March 31, 2013 the Company paid down $314,700 of debentures payable along with
accrued interest on the debentures of $29,050 under five separate conversion notices with the issuance of
625,000,000 common shares.

(314,700 + 29,050) ÷ 625,000,000 = 0.00055

During the quarter ended June 30, 2013 the Company paid down $85,410 of debentures payable along with accrued
interest on the debentures of $14,278 under three separate conversion notices totaling the issuance of 181,250,000
common shares.

(85,410 + 14,278) ÷ 181,250,000 = 0.00055000275

During the quarter ended September 30, 2013, the Company issued 14,471,743 restricted common shares to its
directors for services valued at $70,635, 216,514,545 common shares to retire $117,500 in outstanding debenture
debt and accrued interest and 2,832,552 restricted common shares valued at $10,000 for consulting services.

117,500 ÷ 216,514,545 = 0.00054268871

During the quarter ended December 31, 2013 the Company paid down $211,396 of debentures payable along with
accrued interest on the debentures of $36,104 under four separate conversion notices totaling the issuance of
450,000,000 common shares.

(211,396 + 36,104) ÷ 450,000,000 = 0.00055

During the quarter ended March 31, 2014, the Company issued 370,895,682 common shares to retire $203,993 of
debenture debt and accrued interest to various debenture holders.

203,993 ÷ 370,895,682 = 0.00055000101

Investopedia explains 'Death Spiral'

This type of loan is undertaken by companies that desperately need cash. It is called a death spiral because companies' stocks often plunge drastically after they take on these types of loans. It is important to note that death spirals often allow buyers to convert the bonds into shares at a fixed conversion ratio in which the buyer has a large premium.

For example, a bond with a face value of $1,000 may have a convertible value of $1,500, which means that a bondholder will receive $1,500 dollars worth of equity for giving up the $1,000 bond.

However, upon a conversion, more shares are created, which dilutes the share price. This drop in price may cause more bond holders to convert, because the lower share price means that they will be receiving more shares. Any further conversions will cause more price drops as the supply of shares increases, causing the process to repeat itself as the stock's price spirals downward.


Definition of 'Dilution'
A reduction in the ownership percentage of a share of stock caused by the issuance of new stock. Dilution can also occur when holders of stock options (such as company employees) or holders of other optionable securities exercise their options. When the number of shares outstanding increases, each existing stockholder will own a smaller, or diluted, percentage of the company, making each share less valuable. Dilution also reduces the value of existing shares by reducing the stock's earnings per share.

OUTSTANDING DEBENTURES

I copied and pasted all the outstanding debentures then added them all together... I believe the company may have calculated the debentures payable slightly wrong. Its only like 1500 dollars off from the number I got. Im not sure, You guys can review the filing and add them up if you want to double check..

LIABILITIES
CURRENT
Accounts payable and accrued expenses $ 490,414
Loans from shareholders 2,063,036
Debentures payable and accrued interest 1,285,646
Total current liabilities 3,839,096

PAGE 14-15: http://www.otcmarkets.com/financialReportViewer?symbol=ERBB&id=120695

34,407 +
63,859 +
1,596 +
240,000 +
18,000 +
59,167 +
4,438 +
217,293 +
10,864 +
10,000 +
500 +
22,400 +
280 +
217,293 +
164,015 +
220,000

( COPY AND SEARCH THAT ON GOOGLE TO GET THIS ANSWER )

= 1,284,112

ALL OF THEM CONVERT AT THE 18 MONTH OR 360 DAY LOW WITH A 50 PERCENT DISCOUNT:

The debentures accrue interest at 10% per annum and will convert into the company’s common stock at 50% of the lowest closing bid price 360 trading days before the conversion date.

The debentures accrue interest at 10% per annum and will convert into the company’s common stock at 50% of the lowest closing bid price 18 months before the conversion date.

THIS IS THE MOST RECENT RATE THEY CONVERTED THEIR DEBT AT:

During the quarter ended March 31, 2014, the Company issued 370,895,682 common shares to retire $203,993 of
debenture debt and accrued interest to various debenture holders.

203,993 ÷ 370,895,682 = 0.00055000101

THIS IS HOW LONG HAVE UNTIL THEY CANNOT CONVERT AT 0.0005-.0006:

12/10/13- the pps was 0012. that means that for them to be able to convert at 0.0006 they have to convert before 18 months or 360 trading days.

6/10/14 6 months

12/10/14 12 months

6/10/15 18 months


OUTSTANDING DEBENTURE 1: At March 31, 2014 the Company owed the Holder $34,407 in principal and no accrued interest.

OUTSTANDING DEBENTURE 2: At March 31, 2014 the Company owed the Holder $63,859 in principal and $1,596 of accrued interest.


OUTSTANDING DEBENTURE 3: At March 31, 2014, the
debenture had $240,000 of principal and $18,000 of accrued interest outstanding.


OUTSTANDING DEBENTURE 4: At March 31, 2014, the debenture had $59,167 of principal and $4,438 of accrued interest
outstanding.

OUTSTANDING DEBENTURE 5: At March 31, 2014, the debenture had $217,293 of principal and $10,864 of accrued interest outstanding.

OUTSTANDING DEBENTURE 6: At March 31, 2014, the debenture had $10,000 of principal and
$500 of accrued interest outstanding.

OUTSTANDING DEBENTURE 7: At March 31, 2014 , the debenture had $22,400 of principal and $280 of accrued interest outstanding.

OUTSTANDING DEBENTURE 8: At March 31, 2014, the debenture had
$217,293 of principal and no accrued interest outstanding.

OUTSTANDING DEBENTURE 9: On March 31, 2014, the Company issued a debenture for $164,015 for expenses paid on behalf of the Company
during the quarter ended March 31, 2014.

OUTSTANDING DEBENTURE 10: On March 31, 2014, the Company issued a debenture for $220,000 for expenses paid on behalf of the Company
during the quarter ended March 31, 2014.

NOTE 4. DEBENTURES PAYABLe

Outstanding Debentures

1: On September 30, 2011, the company reduced its accounts payable by $270,000 by issuing a debenture to the
company’s former president for the same amount for unpaid compensation from July 1, 2008 through December 31
2009. The debenture accrues interest at 10% per annum and will convert into the company’s common stock at 50% of
the lowest closing bid price 360 trading days before the conversion date. The Holder is restricted from any
conversions that would result in the Holder owning over 9.9% of the outstanding common shares of the Company after
the conversion. During the quarter ended September 30, 2012, the Company issued 120,213,500 common shares
valued at $78,275 reducing the principal by $72,650 and accrued interest $5,625. During the quarter ended December
31, 2012 the Company issued 85,000,000 shares reducing the principal by $46,750 and accrued interest expense
during the quarter was $3713. During the quarter ended March 31, 2013 the Company issued 150,000,000 shares to
the Holder reducing the principal by $53,450 and accrued interest by $29,050. During the same quarter $3,000 of
interest accrued on the debenture. During the quarter ended September 30, 2013, the debenture accrued $2,254 of
interest. At September 30, 2013 the Company owed the Holder $90,150 in principal and $7,507 in accrued interest.
During the quarter ended December 31, 2013 the Holder converted $33,743 of principal into 61,350,909 common
shares and $7,507 of accrued interest expense into 13,649,091 of common shares. During the quarter ending March
31, 2014, the Company retired $22,000 of debenture principal for the issuance of 40,000,000 common shares and
$3,590 of accrued interest for 6,527,273 common shares. At March 31, 2014 the Company owed the Holder $34,407
in principal and no accrued interest.

2: On November 30, 2012, the Company reduced its loans from shareholders by $120,000 by issuing a $120,000
convertible debenture to a financial consultant of the Company for his services from January 1, 2011 thru December
31, 2011. The debenture accrues interest at 10% per annum and will convert into the company’s common stock at
50% of the lowest closing bid price 360 trading days before the conversion date. The Holder is restricted from any
conversions that would result in the Holder owning over 9.9% of the outstanding common shares of the Company after
the conversion. Accrued interest expense during the quarter ended September 30, 2013 resulted in the Company
owing $120,000 in principal and $10,000 in accrued interest. During the quarter ended December 31, 2013, the Holder
converted into 56,818,182 common shares reducing the principal by $31,250 and 18,181,818 common shares for
$10,000 of accrued interest. Interest of $2,609 accrued during the quarter resulting the principal balance being
$88,750 and accrued interest being $2,609 at December 31, 2013. During the quarter ending March 31, 2014, the
Company retired $24,891 of debenture principal for the issuance of 45,256,364 common shares and $2,609 of
accrued interest for 4,743,636 common shares. At March 31, 2014 the Company owed the Holder $63,859 in principal
and $1,596 of accrued interest.


3: On June 30, 2013, the Company reduced its loans from shareholders by $240,000 by issuing a $240,000 convertible
debenture to a financial consultant of the Company for his services from July 1, 2012 thru June 30, 2013. The
debenture accrues interest at 10% per annum and will convert into the company’s common stock at 50% of the lowest
closing bid price 360 trading days before the conversion date. The terms of the conversion are the same as the
consultant’s terms of conversion for the shares earned during each quarter in which the services were rendered. The
Holder is restricted from any conversions that would result in the Holder owning over 9.9% of the outstanding common
shares of the Company after the conversion. During the quarters ended September 30, 2013, December 31, 2013 and
March 31, 2014 the debenture accrued $6,000 of interest in each respective quarter. At March 31, 2014, the
debenture had $240,000 of principal and $18,000 of accrued interest outstanding.

4: On June 30, 2013, the Company reduced its loans from shareholders by $59,167 by issuing a $59,167 convertible
debenture to a financial consultant of the Company for expenses paid from January 1, 2012 thru June 30, 2012. The
debenture accrues interest at 10% per annum and will convert into the company’s common stock at 50% of the lowest
closing bid price 360 trading days before the conversion date. The terms of the conversion are the same as the terms
of conversion in the grid note for each advance. The Holder is restricted from any conversions that would result in the
Holder owning over 9.9% of the outstanding common shares of the Company after the conversion. During the quarters
ended September 30, 2013, December 31, 2013 and March 31, 2014 the debenture accrued $1,479 of interest in
each respective quarter. At March 31, 2014, the debenture had $59,167 of principal and $4,438 of accrued interest
outstanding.

5: On October 1, 2013, the Company reduced its accounts payable by $217,293 by issuing a convertible debenture in
the same amount to the Company for expenses paid on behalf of Tranzbyte from July 1, 2013 thru September 30,
2013. The debenture accrues interest at 10% per annum and will convert into the company’s common stock at 50% of
the lowest closing bid price 18 months before the conversion date. The terms of the conversion are the same as the
terms of conversion in the note for each advance. The Holder is restricted from any conversions that would result in
the Holder owning over 9.9% of the outstanding common shares of the Company after the conversion. During the
quarter ended December 31, 2013 and march 31, 2013 the debenture accrued $5,432 of interest in each respective
quarter. At March 31, 2014, the debenture had $217,293 of principal and $10,864 of accrued interest outstanding.

6: On October 1, 2013, the Company issued a $10,000 convertible debenture for a $10,000 cash advance on September
16, 2013 to one of its subsidiaries for it’s operation. The debenture accrues interest at 10% per annum and will convert
into the company’s common stock at 50% of the lowest closing bid price 18 months before the conversion date. The
terms of the conversion are the same as the terms of conversion in the note for each advance. The Holder is restricted
from any conversions that would result in the Holder owning over 9.9% of the outstanding common shares of the
Company after the conversion. During the quarters ended December 31, 2013 and March 31, 2014 the debenture
accrued $250 of interest in each respective quarter. At March 31, 2014, the debenture had $10,000 of principal and
$500 of accrued interest outstanding.

7: On November 15, 2013, the Company issued a debenture for $22,400 for cash advances in the same amount on the
same date for cash advances to one of its subsidiaries for it’s operation. The debenture accrues interest at 10% per
annum and will convert into the company’s common stock at 50% of the lowest closing bid price 18 months before the
conversion date. The terms of the conversion are the same as the terms of conversion in the note for each advance.
The Holder is restricted from any conversions that would result in the Holder owning over 9.9% of the outstanding
common shares of the Company after the conversion. At March 31, 2014 , the debenture had $22,400 of principal and $280 of accrued interest outstanding.

8: On December 30, 2013, the Company issued a debenture for $220,144 for cash advances in the same amount for
expenses paid on behalf of Tranzbyte from October 1, 2013 thru December 30, 2013. The debenture accrues interest
at 10% per annum and will convert into the company’s common stock at 50% of the lowest closing bid price 18
months before the conversion date. The terms of the conversion are the same as the terms of conversion in the note
for each advance. The Holder is restricted from any conversions that would result in the Holder owning over 9.9% of
the outstanding common shares of the Company after the conversion. At March 31, 2014, the debenture had
$217,293 of principal and no accrued interest outstanding.

9: On March 31, 2014, the Company issued a debenture for $164,015 for expenses paid on behalf of the Company
during the quarter ended March 31, 2014. . The debenture accrues interest at 10% per annum and will convert into the
company’s common stock at 50% of the lowest closing bid price 18 months before the conversion date. The terms of
the conversion are the same as the terms of conversion in the note for each advance. The Holder is restricted from
any conversions that would result in the Holder owning over 9.9% of the outstanding common shares of the Company
after the conversion.

10: On March 31, 2014, the Company issued a debenture for $220,000 for expenses paid on behalf of the Company
during the quarter ended March 31, 2014. The debenture accrues interest at 10% per annum and will convert into the
company’s common stock at 50% of the lowest closing bid price 18 months before the conversion date. The terms of
the conversion are the same as the terms of conversion in the note for each advance. The Holder is restricted from
any conversions that would result in the Holder owning over 9.9% of the outstanding common shares of the Company
after the conversion.

In finance, a convertible bond or convertible note (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. It is a hybrid security with debt- and equity-like features. It originated in the mid-19th century, and was used by early speculators such as Jacob Little and Daniel Drew to counter market cornering.

From the issuer's perspective, the key benefit of raising money by selling convertible bonds is a reduced cash interest payment. The advantage for companies of issuing convertible bonds is that, if the bonds are converted to stocks, companies' debt vanishes. However, in exchange for the benefit of reduced interest payments, the value of shareholder's equity is reduced due to the stock dilution expected when bondholders convert their bonds into new shares.