"Upon request of a custodian of its convertible notes, the company has taken action to convert three outstanding notes issued in 2010, 2011 and 2012 through an issuance of restricted common shares. The company has also issued shares to a vendor to reduce an outstanding accounts payable, to an entity for services rendered and to board members as compensation.
Accordingly the company expects to record a reduction of $377,500 in its current portion of long-term debt, a reduction of $147,084 in accrued interest and a reduction of $5,000 in accounts payable. As a result, the number of common shares has increased from 17,131,605 as reported at December 31, 2015 to 21,645,146 on August 20, 2016.
An additional 1,594,536 shares are reserved for remaining convertible promissory notes, which are now reduced to $81,500, plus interest (both principle and interest convertible at fixed share prices). The number of free-trading shares remains at 5,895,503.
The company believes these actions will improve both its balance sheets and statements of operations going forward. The company is also in discussions to raise additional capital to fund business plans in the United States and China that have been developed and described in its last shareholder letter and to update its filings to Current Information on OTC Markets."
I am surprised that this action did not happen sooner... still a very tight share structure, so far.
