read this:
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On October 24, 2014, Sanomedics International Holdings, Inc. (the “Company”) entered into two (2) Convertible Debentures (the “Debentures”) with REDWOOD MANAGEMENT LLC and REDWOOD FUND II, LLC (combined “REDWOOD”) in the principal amounts of $189,375 and $63,125, respectively. On October 27, 2014, REDWOOD funded the Company an initial tranche of $125,000 pursuant to the terms thereof, with the remaining $127,500 balance to be funded in one week after execution. The principal sum of the Debentures carries a 1% original issue discount (“OID”) from the stated principal amounts. The maturity date of the Debentures plus interest at 13% per annum is April 24, 2015 or such earlier date as the Debentures are required or permitted to be repaid as provided in the Debentures agreement.
All principal and accrued interest on the Debentures is convertible into shares of the Company’s common stock at the election of the holder thereof at any time at a conversion price equal to 65% of the lowest traded VWAP price during the 10 trading days prior to conversion.
IMHO: read last paragraph. I have feeling that these funds are shorting this stock so they can convert to stock at the lowest possible price.
