Awesome deal Yates!!!
The company is broke requiring money for capital from loan sharks to stay in business. Sure hope they have large margins they are going to need them seeing they are broke. Dilution coming, maybe even a reverse split? STAY AWAY all investors this is a traders stock not an investment stock. You buy this you are swimming with the sharks! $1.45 a share to where it is now only took 4 years to drop this far! Going lower as soon as the dilution starts the finance company will want their money sooner than later?
Item 1.01 Entry into a Material Definitive Agreement.
(See Item 2.03 below, incorporated here by reference)
Item 2.03 Creation of a Direct Financial Obligation of Registrant.
Registrant entered into a financing arrangement on April 3, 2017, with Old Main Capital, LLC, (“Lender”), and delivered its installment Convertible Promissory Note (the “Note”) to Lender. Under the terms of the Note, lender lent the sum of $200,000 to Registrant, and an additional sum of $50,000 after Registrant files a Definitive Schedule 14C with the Securities and Exchange Commission to increase its authorized common stock to at least 1,000,000,000, for a total anticipated financing of $250,000.
Each loan trench under the Note is due nine months from rate of advance and bears interest at 10% per annum. In addition, under an original issue discount provision, the principle of the Note was increased above the $250,000 received by the Company, to $294,117, providing additional consideration to the Lender, with the result that the effective cost to Registrant over the nine month term is approximately 26.5%.
In addition, the principle and accrued interest on the Note is convertible in whole or in part at the option of the holder into shares of the Registrant’s common stock, at a conversion price per share equal to 65% of the average of the two lowest traded prices for the Company’s stock in the 30 days preceding conversion (i.e. a 35% discount to the market).
Funds will be used to order product, meet shipping demands and provide working capital for the Registrant.
