Manzo Pharmaceuticals Inc. (MNZO)

[investor_61]

Unfortunately, that's not what it means. The company had a debt of $203,000. I don't believe it's been disclosed what the debt was for or to whom it was owed. Manzo might not even know.

Ray Barton bought the debt and converted it into four notes worth $310,000. He then sold those four notes to the Firms mentioned in the Quarterly report. Manzo then issued $700,000 worth of FOGC stock to the note holders, to retire the debt. The stock that was issued should be restricted for a minimum of six months from the date of issue.

Selling $203,000 worth of debt for $700,000 worth of Pink Sheets stock isn't a bad deal; however, I'm sure the debt was cooked-up by MMG (perhaps with Barton's help) just prior to the merger and it's bogus debt. If they were forced to, MMG would most likely produce an invoice for P.R. services, or some other such nonsense.

Besides, shouldn't that debt have been offset by the sales of Cressent Energy and Alta Mining????