Yea, he walked into it from old management.
Modification of Debentures Issued in November 2013
"On August 5, 2014 the Registrant entered into a letter agreement with Factor Fund that modified the terms of the Secured Amended & Restated Convertible Debentures issued by the Registrant to Factor Fund on November 18, 2013 (the “A&R Debentures”).
Although he did modify it to increase:
increased the maximum number of shares that Factor Fund can hold upon conversion of the A&R Debentures from 4.99% of the outstanding to 9.99%.
? changed the period over which the conversion price will be measured from the 30 trading days preceding conversion to the 60 trading days preceding conversion.
? eliminated the restriction on the number of shares of common stock that Factor Fund can sell in a month.
? added a provision that the interest rate on the A&R Debentures will increase to 20% per annum in the event of a default.
**Not sure why all this increase. The only logical conclusion that I could have is so that FF sells all of it's shares without holding on to them for a longer period of time. FF doesn't have to sell the shares right away when they get them. They get them at market price. Although BTZO has to also have the shares on reserve as FF release what they hold into the market.
**The good note is that BTZO can pay off the debt in full instead of giving the shares to FF.
From the 8K: "The Registrant may prepay the principal amount of the Debenture, in whole or in part, at any time without penalty, and interest that has accrued on the prepaid amount will be waived."
So the KEY for BTZO is to bring in sufficient Revenue to pay of the debt so that shares are not diluted.
