Yeah...right...they "don't dilute"...
"On November 4, 2014, we entered into a securities purchase agreement with Typenex Co-Investment, LLC, a Utah limited liability company (the “Investor”), pursuant to which we concurrently issued to Investor a Secured Convertible Promissory Note in a principal amount of $1,687,500 (the “Company Note”). Beginning on May 4, 2015, we are required to repay the outstanding balance on the Company Note in monthly installments of approximately $35,000 per month plus all unpaid interest and other costs, fees or charges under the Company Note. Although we intend to repay the note in cash, if we are unable to repay the borrowings from the Investor in cash when they become due and issue shares of common stock to pay an installment, our existing stockholders will likely be significantly diluted pursuant to the terms of the Company Notes and our shares may significantly decline in value or become worthless. On February 5, 2015, we filed Amended and Restated Articles with the Secretary of State of the State of Nevada which increases the authorized number of shares of common stock, par value $0.001, of the Company from 140,000,000 shares to 1,010,000,000 to comply with covenants contained in our debt facility with the Investor and to ensure that we have sufficient shares available for issuance in the event the Company Note is fully or partially converted into common stock."
That's why they raised the A/S ...
"140,000,000 shares to 1,010,000,000"...LOL...
"In addition, if we fail to repay the Company Note when due, or if we are otherwise in default under the Company Note, at the option of Investor a default interest rate of 22% per annum will apply on all portions of the Company Note that are then eligible to be converted into our common stock while the default continues. In the event we are in default under the Company Note, the Investor also has the option to accelerate the note with the outstanding balance becoming immediately due and payable or increase the outstanding balance of the note by an amount of 5% or 15% depending on the particular default. In addition, if we fail to issue stock to the Investor within three trading days of receipt of a notice of conversion, we must pay a penalty equal to the greater of (i) $500 per day; or (ii) 2% of the product of (A) the number of shares to which Investor was entitled that were not issued on a timely basis; and (B) the closing sale price of the common stock on the trading day immediately preceding the last day for us to timely issue the shares. In the event that any of the foregoing circumstances occur, our results of operations may be materially adversely effected, and our stock price may fall. As of June 30, 2015, the Company elected to deduct and offset the principal amount of $1,300,000 and all accrued interest thereon owing by the Investor under the remaining nine investor Notes from the amount owed by the Company under the Company Note. As of October 1, 2015 the aggregate outstanding balance under the Company Note is approximately $158,000."
Look into similar "deals" Typenex has made with other companies...
Oh...wait...I forgot...this is "different"...
