Carnegie Development Inc. (CDJM)

[Milesblue42]

Could Escue Energy obtain Future Toxic Financing?

What exactly does this mean?

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11644541

In the future we will rely on cash flow financing activities to fund our capital expenditures and to support our working capital requirements. We expect that future cash requirements will principally be for capital expenditures and working capital requirements.



We have generated no revenues since our inception and have incurred an accumulative deficit of $3,265,443 as of June 30, 2016. We anticipate that we will continue to incur net losses in the near term, and we may never be able to achieve profitability. We expect to continue to incur losses for the foreseeable future. In order to achieve profitable operations we need to generate significant revenues from fees earned from the business. We cannot be certain our business strategies will be successful or that we will generate significant revenues and become profitable. With respect to our promissory note, preferred stock dividend and unpaid debt obligations ($364,125, $15,065 and $616,030, respectively), it is not the intention of the Company to utilize proceeds of this offering to satisfy those obligations. Rather we intend to negotiate deferrals in payment such that these obligations may be paid from operating revenues when available. To the extent that certain of these obligations cannot be deferred, we will need to obtain additional public or private equity financings or debt financings in order to continue operations.

Wait so instead of paying off the unpaid debt by seeking approval from the SEC with the S-1....this Company is going either kick the ball down the road.....or possibly obtain possible toxic financing? If Escue Energy decides in the future to obtain toxic financing what will happen to the share price?

Is Escue Energy using some of the same tactics that Gary F Kimmons used that ended up leading to multiple Reverse Splits?