MyECheck, Inc. (fka MYEC)

[eqinvestor]

Typenex did not refinance anything. They had a judgment against MyECheck. The MyECheck property was all tied up in El Dorado Hills. In order to attach to the Nevada and Hawaii properties, they traded the purchase of the TCA debt for the right to attach to the real estate which is what Ed gave them. In other words, you're now in for $1.5 million instead of $1,000,000 but you are secured vs unsecured. That is what happened. For Typenex, it seemed like a no brainer. The only challenge they are going to have is when the SEC comes in because the SEC will review that transaction. Here is the $1,000,000 question. Would they have given an additional $500,000 when there was already a default on $1,000,000 unless they could attach to the real estate that wasn't on the books. I think they are OK with the new $500,000 but securing the $1,000,000 when it wasn't originally secured could be a problem in the regulators minds. Just my opinion.