Tuesday, August 11, 2015 10:57:05 AM
Subsequent events
On January 30, 2015, the Company issued a convertible promissory note in the principal amount of $64,000 bearing interest at the rate of 8% per annum. The note matures on November 3, 2015 and the principal and any accrued interest thereon may be prepaid, subject to certain conditions. The note may be converted into shares of the Company’s common stock at a discount to the market price of the Company’s common stock.
On January 31, 2015, the Company issued a short term convertible promissory note to a related party in the principal amount of $159,838 that matured on March 29, 2015. The note bears an interest rate of 12% per annum and may be prepaid in whole or in part, subject to certain conditions. The note may be converted into shares of the Company’s commons stock at a discount to the market price of the Company’s common stock.
On February 12, 2015, the Company issued a convertible promissory note in the principal amount of $180,000 for a purchase price of $125,000 reflecting a $50,000 OID. The note matures six-months from the date of issuance and accrues interest at 18% per annum or the maximum rate permitted by law in an event of default. The note may be converted into shares of the Company’s commons stock at a discount to the market price of the Company’s common stock.
On February 18, 2015, the Company entered into a consulting agreement. Per the terms of the agreement the Company agreed to issue 128,730 shares of the Company’s common stock at a value of $0.15 or $19,308
On February 20, 2015, the Company amended loans to the Company made by a related party dated April 2, 2014 and April 22, 2104, in the original principal amounts of $50,000 and $28,000, respectively such that the remaining principal was combined into one convertible debenture in the principal amount of $110,000. The debenture matures on January 30, 2020 and bears interest at the rate of 10% per annum. The debenture may be converted into shares of the Company’s commons stock at a discount to the market price of the Company’s common stock.
On February 27, 2015, the Company issued a convertible promissory note in the principal amount of $110,250 for a purchase price of $105,000 reflecting a 5% OID. The note matures one-year from the date of issuance and accrues interest at the rate of 8% per annum increasing to 12% per annum in an event of default. The note may be converted into shares of the Company’s commons stock at a discount to the market price of the Company’s common stock.
On March 11, 2015, the Company issued a convertible promissory note in the principal amount of $35,000 in exchange for a convertible promissory note issued to a related party originally issued on July 25, 2014. The note matures one-year from the date of issuance and bears “guaranteed” interest at the rate of 8%. The note may be converted into shares of the Company’s commons stock at a discount to the market price of the Company’s common stock.
On March 12, 2015, the Company issued a convertible promissory note in the principal amount of $55,000 for a purchase price of $50,000, reflecting a 10% OID. The note matures one-year from the date of issuance and bears “guaranteed” interest at the rate of 8%. The note may be converted into shares of the Company’s commons stock at a discount to the market price of the Company’s common stock.
On March 16, 2015, a holder of a note converted a portion of the note. The conversion provided an issuance of 13,889 shares at a value of $0.72 or $10,000.
On March 20, 2015, the Company issued a convertible promissory note in the principal amount of $35,000 to a related party bearing interest at the rate of 10% per annum. The note matures on September 30, 2015 and the principal and any accrued interest thereon may be prepaid, subject to certain conditions. The note may be converted into shares of the Company’s commons stock at a discount to the market price of the Company’s common stock.
The Company paid aggregate commissions of $64,800 to a registered broker-dealer, in connection with the issuance of convertible notes in the aggregate principal of up to $875,000. In addition, the broker-dealer is entitled to receive warrants to shares of the Company’s common stock equal to 8% of the aggregate number of securities sold.
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