This is how we got in to all this trouble with the debt holders.
In July, 2013, the Company reached a settlement with both Preferred Series E holders, JFenway and Paul Lovito. The initial settlement provided that each Preferred E Holder receive a convertible note in the amount of $1,162,500 note in return for the retirement of 30,000,000 Series E Preferred Stock which converted at 1:15..
Subsequently, it was decided that the amount of the notes was egregious and each holder agreed to enter into settlement upon a new amount. Mr. Lovito and JFenway have agreed and executed a new note in the amount of $225,000 which equated to two times the value of those preferred at the time of the transaction. The notes carry an interest rate of 10% with an initial 12 month “interest free” period.
The crappy part about it is these preferred shares converted at 1 for 15 and would have only converted to 450 million common shares if we did not give them a cash settlement and made them convert them. They would have been gone over a year ago and the O/S would have had 2 billion less shares In it. I'm not sure who and how that all got set up. I believe all this was set up before they brought Mike in as CEO. Mike has done nothing but tried to over come this and get rid of these guys. I have seen him hard at work first hand for almost two years now. The debt holders are holding him down with the funding he needs to operate this company. I don't think he even has the money to change the websites to GRLF right now. I think that's why he has not done it yet. All the bashing on Mike is really working against what we are all trying to overcome here and working in the debt holders favor. I'm not sure the debt holders even broke any laws to get this kind of grip they have. It could have just been a slick business move that was within the laws..
If the company never makes enough to pay these debt holders back they will keep getting shares forever (ATM) and at these prices the PPS have been at they get a lot of them to convert every time a payment is due. That's why it is so important that Mikes gets this Maine deal together. I think he knows his job and the company as we know it is depending on it. If he get's this deal together the PPS will be a super good buy at these levels and I think we will be on our way to a huge turn around for this ticker.
MAKE It HAPPEN MIKE!!!!
GOOD LUCK TO US ALL!!!!
