I only just noticed this in the last prospectus CTTC issued:
"As a condition for the execution of the Equity Purchase Agreement, we issued a convertible promissory note in principal value equal to $65,000.00, maturing six months from the date of issuance. The convertible promissory note has no registration rights and is convertible into the common stock of the Company at lesser of $0.35 or 50% of the lowest daily VWAP (volume weighted average price) price for the ten days prior to conversion."
Well, it's been over six months and the "lesser" no doubt was 50% of the LOWEST VWAP -- guessing at best maybe 20 cents?
So CTTC, in effect, GAVE away around 325,000 shares just to get the "equity purchase agreement"?
Talk about desperate!
What I wonder is whether CTTC has ever even made use of it -- given the recurring loans from the BOD chairman.
Another interesting little passage:
"Our common stock is deemed to be "penny stock" as that term is defined in Rule 3a51-1 promulgated under the Securities Exchange Act of 1934.
Broker/dealers dealing in penny stocks are required to provide potential investors with a document disclosing the risks of penny stocks. Moreover, broker/dealers are required to determine whether an investment in a penny stock is a suitable investment for a prospective investor. These requirements may reduce the potential market for our common stock by reducing the number of potential investors, and may make it more difficult for investors in our common stock to sell shares to third parties or to otherwise dispose of them. This could cause our stock price to decline."
Talk about getting it every which way -- near broke, dumped by its inventor, stuck with a roomful of machines that no one wants, facing fines for late SEC filings, with a new CEO who's evidently dumber than owlss__t, AND you're a "penny stock" that the law requires investors be "qualified" to purchase!
Whew! I'm glad I don't own any shares!
