Exerpt from today's 14A:
I realize I may be beating a dead horse, but how could they be surprised by the "decline in our trading price since issuance of the Notes has resulted in the issuance of substantially more shares than was anticipated". It is either a case of illegality or being so severely naive that it should be criminal on the part of company management. This is akin to the worst drug dealer loan shark deal ever contemplated...and our company management took the bait! And with our esteemed scientist, reputation and research to date we had no other way to raise money??? Again, something very rotten in Denmark!
<<Through July 6, 2016, we had issued to the Holders an aggregate of 157,428,887 shares of common stock in conversion of the Notes, whether through conversions by the Holders or conversions by us to make installment payments under the Notes. The decline in our trading price since the issuance of the Notes has resulted in the issuance of substantially more shares than was anticipated, and if our trading price does not increase from the closing price on July 1, 2016 of $0.01 per share, we would need at least 1,786,323,490 additional shares in order to complete the repayment of the Notes. In addition, we are required by the Notes to all times keep reserved at least 300% of the number of shares of common stock necessary to effect the conversion of the remaining balance of the Notes in full. On July 6, 2016, we entered into the Interim Agreements, which in exchange for certain limitations on the sale of our shares by the Holders, we agreed to seek the Reverse Split in order to increase our trading price and effectively increase the number of shares of common stock that will be available for future issuance.>>
