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Re: getmoreshares post# 390

Thursday, 08/24/2017 9:11:18 PM

Thursday, August 24, 2017 9:11:18 PM

Post# of 427
The next likely event will be mass dilution.

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Pursuant to the Purchase Agreement, each of the Sellers will receive up to 100,000 shares per year of the 600,000 shares of our common stock that are held pursuant to the Escrow Agreement depending on the revenues and earnings of Bulbs each year for the three years ended December 31, 2019, with the maximum of 100,000 shares to be released if Bulbs has at least $2.5 million of revenues with a 15% profit margin in any such year. With respect to such shares, the Sellers may elect to have us purchase such shares from the Sellers at the time of release if the then-current market price of our common stock is less than $1.50 per share, subject to adjustment. However, our purchase obligation will be subordinate to our outstanding indebtedness to TCA Global Credit Master Fund, LP (“TCA”), pursuant to the terms of the Senior Secured Revolving Credit Facility Agreement dated as of January 29, 2016 (the “Credit Agreement”) between TCA and our company.

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