Did anyone actually read this? LOL
Your "buyer" is coming out of this deal with roughly 4 BILLION shares of common stock, immediately convertible. Don't know what that means? Let me tell you. At any given time they want, the buyer of these shares can sell WHATEVER THEY WANT. 4 BILLION SHARES are at their disposal, for a MASSIVE PROFIT at $.00001 par value.
Anyone care to elaborate on this?
FROM THE 8-K:
The Securities. Subject to the terms and conditions set forth in this Agreement, the Buyer shall purchase from the Company and the Company shall issue to the Buyer one billion (1,000,000,000) shares of the Company’s COMMON STOCK, par value $0.00001 (the “Common Stock”), and 100,000 shares of the Company’s SERIES H PREFERRED STOCK, par value $0.00001 (the “Preferred Stock” and together with the Common Stock, the “Securities”) which are convertible into shares of the Company’s Common Stock (the “Conversion Shares”).
5.5.2 Conversion Ratio. The number of shares of Common Stock to which a holder of Series H Preferred Stock shall be entitled upon a Conversion shall equal the product obtained by (a) multiplying the number of Fully-Diluted Common Shares by four (4), then (b) multiplying the result by a fraction, the numerator of which will be the number of shares of Series H Preferred Stock being converted and the denominator of which will be the number of authorized shares of Series H Preferred Stock. The term “Fully-Diluted Common Shares” means the sum of the outstanding Common Stock plus all shares of Common Stock that would be outstanding if all outstanding securities that could be converted into Common Stock without additional consideration were converted on the Conversion Date, but shall not include Common Stock issuable on conversion of the Series H Preferred Stock.
