There was no risk, they got ~$8M in stock in exchange for $1M. They could sell that stock whenever they wanted to. Not to mention that $1M was almost positively raised simply converting smaller toxic notes just a few days before. It's basically outright fraud. It's right there in the filings:
On January 7, 2014, the Company issued 3,542,795 shares of common stock upon conversion of a convertible note in the amount of $32,000 in principal, plus accrued interest of $3,428 for a total conversion of $35,428.
On January 13, 2014, the Company received an additional $25,000 in consideration on a 10% convertible note.
On January 21, 2014, the Company issued 1,604,406 shares of common stock upon conversion of a convertible note in the amount of $25,000 in principal, plus accrued interest and original issue discount of $4,313 for a total conversion of $29,413.
On January 23, 2014, the Company issued 3,687,863 shares of common stock upon conversion of a convertible note in the amount of $33,000 in principal, plus accrued interest of $3,879 for a total conversion of $36,879.
That is them dumping small notes for shares worth about a million...
... now that they raised their money dumping shares on retail investors they issue new notes with the money they got from them...
On January 29, 2014, the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") providing for the sale by the Company of an unsecured Convertible Note (“the Note”) in the principal amount of $100,000, of which the Company received $90,000 in consideration upon execution of the note. The Note matures nine (9) months from the effective date and may be extended by the lender for twelve (12) months from the effective date. The note may be converted into shares of the Company’s common stock at a conversion price of $0.05 per share or fifty percent (50%) of the lowest trading price of common stock recorded on any trade day after the effective date. The note bears interest at the rate of 10% per year.
On January 31, 2014, the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") providing for the sale by the Company of an unsecured Convertible Note (“the Note”) in the principal amount of $750,000, of which the Company received $750,000 in consideration upon execution of the note. The Note matures in nine (9) months from the effective date, and may be extended by the lender for twelve (12) months from the effective date. The note may be converted into shares of the Company’s common stock at a conversion price of $0.05 per share or fifty percent (50%) of the lowest trading price of common stock recorded on any trade day after the effective date. The note bears interest at the rate of 10% per year.
And here is them dumping huge amounts of shares right after the deal went through:
On February 3, 2014, the Company issued 301,205 shares of common stock upon partial conversion of a convertible note for principal in the amount of $15,000.
Between February 3, 2014 and March 6, 2014, the Company issued an aggregate total of 4,000,000 shares of common stock upon conversion of vested restricted stock options.
On February 5, 2014, the Company issued 335,570 shares of common stock upon conversion of a convertible note for principal in the amount of $20,000.
On February 11, 2014, the Company issued 185,111 shares of common stock upon conversion of a convertible note for principal in the amount of $7,500, plus interest of $1,700.
On February 11, 2014, the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") providing for the sale by the Company of an unsecured Convertible Note (“the Note”) in the principal amount of $100,000, of which the Company received $20,000 in consideration upon execution of the note. On February 26, 2014 and March 13, 2014, the Company received additional advances of $20,000 and $30,000, respectively, for an aggregate sum of $60,000. The Note matures nine (9) months from the effective date. The note may be converted into shares of the Company’s common stock at a conversion price of $0.05 per share or fifty percent (50%) of the lowest trading price of common stock recorded on any trade day after the effective date. The note bears interest at the rate of 10% per year.
On February 13, 2014, the Company issued 227,979 shares of common stock through a cashless exercise for stock options given to a board of director for services.
On February 21, 2014, the Company issued 8,518,345 shares of common stock upon conversion of a convertible note in the amount of $118,584 in principal, plus accrued interest of $13,450 for an aggregate total converted of $132,034.
On February 26, 2014, the Company issued 1,615,384 shares of common stock upon conversion of a convertible note in the amount of $20,000 in principal, plus accrued interest of $1,000 for an aggregate total converted of $21,000.
On March 6, 2014, the Company issued 5,924,454 shares of common stock upon conversion of a convertible note in the amount of $84,000 in principal, plus accrued interest of $7,829 for an aggregate total converted of $91,829.
On March 13, 2014, the Company issued 2,968,937 shares of common stock upon conversion of a convertible note in the amount of $20,000 in principal, plus accrued interest of $1,079 for an aggregate total converted of $21,079.
On March 10, 2014, the Company issued 2,957,361 shares of common stock upon conversion of a convertible note in the amount of $20,000 in principal, plus accrued interest of $1,000.
While all of this was going on Nelson still found $13,000 to pay to go on this weird Youtube show to pump the stock with his usual BS:
