Nate's Food Company (NHMD)

[DrContango]

FORM 10-Q IS 7 DAYS DELINQUENT

If they are delinquent (again) then that means JSJ cannot convert and NHMD is in default (again) to the toxic note.

This is bad, VERY BAD! JSJ is aggressive at collecting and has an army of lawyers ready to sue NHMD into oblivion and beyond.

NHMD conveniently did NOT file the full terms of the JSJ contract.

Here is a JSJ toxic contract filed by JAMN. One can assume that default provisions/remedies might be somewhat similar...

https://www.sec.gov/Archives/edgar/data/1334586/000158069516000910/ex10-50.htm

A default is triggered by failure to timely file the 10-Q.

Here is the remedy:

b. Remedies. If an Event of Default occurs, the Holder may in its sole discretion determine to request immediate repayment of all or any portion of the Note that remains outstanding; at such time the Company will be required to pay the Holder the Default Amount (defined herein) in cash. For purposes hereof, the “Default Amount” shall mean: the product of (A) the then outstanding principal amount of the Note, plus accrued Interest and Default Interest, divided by (B) the Conversion Price as determined on the Issuance Date, multiplied by (C) the highest price at which the Common Stock traded at any time between the Issuance Date and the date of the Event of Default. If the Company fails to pay the Default Amount within five (5) Business Days of written notice that such amount is due and payable, then Holder shall have the right at any time, so long as the Company remains in default (and so long and to the extent there are a sufficient number of authorized but unissued shares), to require the Company, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Company equal to the Default Amount divided by the Conversion Price then in effect.

#StrawberryShortcakeCancakesYUM


Doc