Mindpix Corp. (fka MPIX)

[Toxic Avenger]

So much for "no death spirals"
"From April 2013 through June 2013, the Company issued convertible notes with an aggregate face value of $126,000. The notes mature one year from issuance, bear interest at an annual rate of 10%, and are convertible into common stock of the Company at the option of the holder at a conversion rate equal to 30% of the average of the lowest five closing trading prices of the Company’s common stock during the twenty trading days immediately preceding the conversion date with reset provisions on the conversion rate. The Company will account for the conversion feature as a derivative liability, presented as a liability on its balance sheet, adjusted to fair value at each reporting date, with changes in fair value reflected in the consolidated statement of operations." http://edgar.sec.gov/Archives/edgar/data/1053368/000149315214000486/form10.htm

70% off the lowest closing prices for 5 out of 20 days. That's the best deal I've ever seen for convert holders and guarantees retail will be screwed.

And HOW did they neglect to mention these 2nd quarter notes in either the 2nd or 3rd quarter filings? An oversight no doubt.

And remember all those shares they were getting back. Looks like they're still waiting. "Due from Emax Media, Inc. and Affiliates (608,272,878 and 25,000,000 shares of common stock, respectively)"

But don't worry. Only 300 million shares to work through, plus whatever the death spiral convert holders convert. "Accordingly, as of the date of this filing 305,531,909 shares of our Common Stock held by non-affiliates are eligible for resale under Rule 144."

I guess the moniker foxy roxy is well deserved.

Too funny.