Oceana will not dilute REDG with the full 2 billion shares in my opinion because they will be paid in full long before that happens.
Here is the breakdown as close as I can figure.
($180,288 (claim amount) + 8% of total for agent fee) = $194,711.04 + fees (attorney/court costs/etc) $75,000 (i’m uncertain on the 75k though. = $269,711.04 if my calculations are correct.
Pg. 3 line 24-28 and Pg. 4 line 1 - 3
“The final number of shares of Common Stock to which Plaintiff will be entitled under the order (“Final Amount”) will be that number of shares with an aggregate value equal to the Claim Amount plus 8% agent fee, and reasonable fees and expenses for the attorneys for Plaintiff and Defendant, divided by the share price. The “Share Price” will be 85% of the following: the closing price of the Common Stock on the date of entry of the Order, not to exceed the arithmetic average of the lowest five individual daily volume weighted average prices during the Caluclation Period, less $0.0001 per share; all as reported by the Bloomberg Professional service of Bloomberg LP (“Bloomberg”). On page 4 line 28 to page 5 line 1 - 3 “if the sum of the Initial Issuance and any Additional Issuance is greater than the Final Amount, Plaintiff will promptly return any remaining shares to Defendant or its transfer agent for cancellation, (“Final Adjustment”). So that last part means, as soon as Oceana is paid in full from selling, if they have any extra shares left they revert back to Red Giant and are no longer in play.
There is a very good chance much of this Settlement is already taken care from Oceana already selling, which they are not required to register them to do so under the court order exemption.
As to the “notes” I found only two left both to Hoppel. The previous notes were taken care through dilution back in Oct, which was restated in the 13g just recently as acknowledgement of beneficial ownership.
The two that are left:
Hoppel #1: Originally issued May 29, 2015. Addendum #1 to this note effective Dec. 8, 2015 $30,800 due to late filing of 10k in Aug. Reference to eight months are now twelve months (meaning extension) Company shall have option to pay off the amount by Jan 9, 2016. Increase to 150% of value if in default ( which a late filing is listed as a default provision. Don’t get that part because OTC’s are not required to file by law.)
Hoppel #2: Issued Dec. 17, 2015 not due for 12 months. Amount = $110,000 principal and $30,000 consideration paid at close. One time 12% interest charge applied at issuance and paid at Maturity date. Includes a list of default provisions, in which one of them is a late filing default. Still don’t get why if they are OTC and not required by law. Doesn’t come into effect until after Jan. 30th, 2016 and would be $1,000 per day until default is remedied. And continues will a bunch of other legal details.
That is all that is out there as far as notes that are listed. If any happened after that we don’t know.
The Hoppel #1 could have already been taken care of and we don’t know it. The #2 is not due till December, but that provision of filing is what has caused a lot of debate here.
I’m not sure how others feel, but this debt to me is very small overall. And considering 2 revenue streams are now in play, and the 3rd is on it’s way, I would think this dept could be absorbed very quickly. Even if the default did happen and the $1,000 happened, it would be currently $68,000 (business days since the missed filing Feb 15 I think, and the kick in of the fine).
Just thought I’d get to the details of these two things and hopefully help any new people wondering what the story is.
I’m going back to enjoying POWFOLIO! More new content uploaded so I’m headed to my nightly routine before bed - POW before bed! Enjoy, thedocg
