"LOVITO/HAROLD? Why would they not want SHEA to succeed? that is "RIDICULOUS"!"
I have the answer for you...
This is how you trap a company in the pinks. When Levito left as the CEO he set all this up before bringing Mike in to take over.
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..The notes carry an interest rate of 10% with an initial 12 month “interest free” period.
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 new notes in the amount of $225,000 which equated to two times the value of those preferred at the time of the transaction. The note carries an interest rate of 10% with interest charged for the first 12 months.
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 our O/S is so high right now. It's not because of Mike. It's because we have payments to make to the debt holders. If you look at the filings you will see that Mike has to keep borrowing some money back from them every time they convert. If he didn't the company would have no money to operate and we would not be currant right now. It might sound crazy but Mike needs these guys right now to keep the company funded till he gets something going and has his own money coming in. A non reporting pink sheet company can not sell shares into the market themselves to raise money. Only a debt holder can do it by converting debt to common shares and usually at a 50% discount.
The debt holders would not like to be paid off because if they are they will only get what's left of the $225k that's owed to them. If you look at the filings they both got a lot more then then the $225k just this year alone and that's because the company is not able to pay them back yet. Sounds ridiculous, but that's how it works. They make a lot more money if the company never gets going. Even an R/S wont shake them because they have debt in the company they don't hold shares. They convert the debt to shares right before they sell into the market. They can care less where the price per share is they still get the same amount of money out of the market they just convert more shares to do it. They can sell at .0001 or .01 it don't matter to them that's why they are not concerned about getting anything going and that's why our O/S keeps going up. The company can do 10 R/S's in a row and it wont affect there ATM. They only way to stop them is to pay them off fast and don't borrow any more money from them.
It's a cycle that Mike is working on braking. One good deal and we will be on our way to getting rid of these guys once and for all. These guys have hold us down long enough!!!
MAKE IT HAPPEN MIKE! GET THOSE MONKEYS OFF YOUR BACK!!!
