Thursday, May 18, 2017 9:55:59 AM
GMER unable to meet its financing obligation:
In accordance with the Company's March 1, 2017 amendment to the Secured Promissory Note with ViaOne Managed Services, LLC, ("ViaOne") an entity controlled by our outside Director David Dorwart, the entire principal balance and all accrued and unpaid interest owing under the Promissory Note was due and payable in full without setoff, deduction or counterclaim on May 1, 2017, if the Company was unable to provide outside funding for its operations for the month of May, separate from advances under the Note, in excess of its actual monthly burn rate which at the time was $63,000, of which only $50,000 was funded by ViaOne. In addition, the holders of the Company's Series C Preferred Shares amended their Stock Pledge Agreement whereby they agreed to pledge to ViaOne the Company's Class C Preferred Stock having a voting power equivalent to 51% of all shares entitled to vote. As of May 1, 2017, the Company did not meet its obligation under said amended Secured Promissory Note, and in accordance with the Amended Secured Promissory Note and Stock Pledge Agreement ViaOne provided notice to the Company dated May 5, 2017 and received by the Company on May 8, 2017 that the Company did not meet the terms of their Agreement. In accordance with the Secured Promissory Note the Company therefore owed ViaOne $363,000, the amount owed as of that date. In accordance with said Stock Pledge Agreement, in the event the Company was unable to provide outside funding for its operations, separate from advances under the Note, in excess of its actual monthly burn rate, within fifteen days after the written notice, which will be May 23, 2017, then the Company's Class C Preferred Stock shall be released from pledge and transferred to ViaOne, resulting in a change of control of the Company. The result does not dilute any of the Company's preferred or common shareholders and CMG remains the majority shareholder. Discussions are underway to conclude a more permanent finance solution going forward.
Replies:
It may be what will save GG.
Jrod301 on 5/18/2017 7:15:57 AM
Wow!! Are we ever Screwed!!!!... and that's why
just4fun2 on 5/18/2017 9:20:42 AM
Report TOS
Moderate
The Truth is out There....or is it a bunch of smoke and Mirrors.....
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