MyECheck, Inc. (fka MYEC)

[21ZNA9]

SCAM MYEC Dilution TOXIC FINANCING @11%

Under the terms of the agreement, the Company will draw down $550,000 at closing. The initial drawdown will accrue interest at a rate 11% annually and matures in nine months. Fees were $49,950 to TCA, primarily consisting of legal and due diligence fees. The Company also paid $22,000 plus 970,588 shares of restricted common stock to Meyers and Associates for broker fees related to the transaction.

As compensation to TCA for the $5,000,000 line of credit, TCA is entitled to $100,000 worth of MyECheck restricted common stock. The Company will issue 2,941,176 shares of restricted common stock to TCA now as security for the $100,000 stock obligation. The issued stock carries a redemption feature whereby should the value of the stock exceed $100,000; any shares above that threshold shall be returned to the Company.

Conversely, should the value of the stock go below $100,000, the company will issue additional shares to cover the discrepancy. At maturity, the actual number of shares issued to TCA, will be equal to $100,000 at the then current stock price. The Company has also agreed to set aside restricted common stock to be used as a reserve fund for the benefit of TCA and can only be made available to TCA should the Company go into default on the line of credit.

The credit facility is convertible to stock on a mutually acceptable and agreed-to basis. The conversion ratio is 80% of the current price at time of conversion. There is no prepayment penalty on any draw downs on the line of credit.

Liar said no dilution!

http://archive.fast-edgar.com//20141031/ABA2K22CZZ22M2ZA22TG2CZBLBAIMB22Z262/