They lost 2 major court cases totaling over a million dollars in unpaid debt that will be converted into unrestricted shares (diluted) -- of the two, $866,210.45 is being issued now. As a result, I expect at least another billion shares will be added to the outstanding in the near future.
They better issue a PR to explain if this is the 850 million shares that's being blown into the market now, that's showing up on the TA report -- or it's in addition to those shares, which will undoubtedly increase the outstanding by a billion shares...to over 6 billion!
On January 17, 2017, an investment firm filed a civil complaint against the Company in the Third Judicial DistrictCourt of Salt Lake County, State of Utah, alleging breach of the terms and conditions of a convertible debt instrument.The Company contested the allegations. On September 29, 2017, the Third Judicial District Court of Salt Lake County,Utah, ordered an arbitration award to the plaintiff in the amount of $164,563.22. The Company is negotiating with thePlaintiff on settlement of the award.
Note 7 – Subsequent Events – Federal Court Proceeding and Order
On September 14, 2017, the Company entered into a “Settlement Agreement and Stipulation” (the “Agreement”)with an Investor providing for the issuance of unrestricted share of the common stock of the Corporation under Section 3(a)10 of the Securities Act of 1933, as amended, in settlement of $866,210.45 in debt owed by the Company to the Investor under several convertible promissory notes included in the September 30, 2017 financial statementsof the Company.
On November 2, 2017, the United States District Court For The District of Maryland, Northern Division (the “FederalCourt”), issued a federal court order (the “Court Order”) as the result of a “Fairness Hearing” conducted on November1, 2017, Case No. BPG-17-2758, (i) which stated that the Agreement is “hereby approved as fair” to the Investor and to whom the shares will be issued over time, within the meaning of Section 3(a)10 of the Securities Act and that thesale of said shares to the Investor and their resale in the United States by the Investor, assuming satisfaction of all other applicable securities laws and regulation, will be exempt from registration under the Securities Act, and (ii)which ordered compliance with the Agreement by the Corporation and Investor, and (ii) reserved jurisdiction overthe Corporation and Investor as well as the subject matter of the Agreement for purposes of contempt and enforcementof the Agreement as well as for such other purposes as allowed by law. As a result of the above, $866,210.45 inprincipal, accrued interest and fees owed the Investor is hereby to be converted to equity over time and the debt thereby extinguished.
