OUCH! $850,000 in toxic FLOORLESS CONvertible debt, including this JUST DISCLOSED FOR THE FIRST TIME ugly as hell $500,000 note to known death-spiral toxic financier at 24 percent interest and payable beginning in less than 2 months!!!
" Promissory Note and Warrants to SBI Investments LLC, 2014-1
On June 30, 2016 (the “Issuance Date”), we closed on the transactions contemplated by the securities purchase agreement (the “SPA”) with SBI Investments LLC, 2014-1 (“SBI”), whereby SBI agreed to invest $500,000.00 (the “Purchase Price”) in our Company in exchange for the Note (as defined below), Series A Warrant (as defined below), and Series B Warrant (as defined below). Pursuant to the SPA, we issued a promissory note to SBI, in the original principal amount of $550,000.00, which bears interest at 8% per annum (the “Note”). The Purchase Price was paid to us in full on the Issuance Date. The maturity date of the Note is June 30, 2017 (the “Maturity Date”). Any amount of principal or interest that is due under the Note, which is not paid by the Maturity Date, will bear interest at the rate of 24% per annum until it is paid.
Beginning 6 months after the Issuance Date [THAT'S DECEMBER 31, 2016, FOLKS!], we are required to make bi-weekly amortization payments (one payment every 2 weeks), consisting of 1/12 th of the outstanding principal and interest, until the Note is on longer outstanding (each a “Bi-Weekly Payment”). Each Bi-Weekly Payment may be made in cash, or in our common stock (“Common Stock”) if certain equity conditions are satisfied. Such equity conditions include but are not limited to an average daily dollar volume of the Common Stock greater than $25,000.00 for the 20 trading days prior to a Bi-Weekly Payment. If the equity conditions are satisfied, and we decide to make a Bi-Weekly payment in Common Stock, then the shares of Common Stock to be delivered shall be calculated as follows: the amount of the Bi-Weekly Payment divided by the Base Conversion Price (as defined below). The Base Conversion Price shall equal the lower of (i) the closing price of the Common Stock on June 30, 2016, or (ii) 60% of the average of the lowest VWAP of the Common Stock for the 20 trading days immediately prior to the date of the Bi-Weekly Payment. Additionally, SBI has the right at any time, beginning six months after the Issuance Date, to convert amounts owed under the Note into Common Stock at the closing price of the Common Stock on June 30, 2016. The conversion price under the Note is subject to proportional adjustment in the event of stock splits, stock dividends and similar corporate events as provided therein. If an event of default under the Note occurs, SBI has the right to convert amounts owed under the Note into Common Stock at 60% multiplied by the lowest VWAP of the Common Stock for the 20 trading days immediately prior to the applicable conversion date."
BIG, BIG RED PAIN coming in a month and a couple of weeks.
This turd, LOGG, will be subpenny and then trips in no time flat.
More highlights from the Q: LOGG has ZERO revenue and lost $2,9310,000 in the last three quarters ended Sept 30th!
LOL!!! What a huge TURD this scam is.
There is absolutely NO reason for this TURD to be trading above 0.0001 - NONE.
