9) What were the negotiations that were made with creditors to eliminate $502,222 of debt? Was this debt cancelled because of an agreement to trade for MyECheck’s check processing services?
A) The majority of the debt eliminated was loans to the Company, the derivative liabilities created by the loans, and numerous small accounts payable bills from various service providers. The loan instruments were Convertible Notes and Debentures. We found investors to buy these notes from the note holders; the notes were converted into shares of MYEC and sold. Almost all of the stock in the public float was created this way. With the debt from the Convertible Debenture gone the derivatives liabilities are eliminated also. The smaller debt was negotiated on a case-by-case basis with each creditor with various resolutions, but none of the creditors would have brought much value as a customer. This conversion of debt into stock also restarted the market for MYEC stock.
Maybe these investors are trying to get some of their money back, selling off a certain amount of shares a day, just a thought, imo
