Taco, From the 8K on Old Main $, which was left out of news release:
So the company pays 26.5% to get money and then at a Minimum gives 35% discount upon conversion. 61.5% on that small of money, it's worse than a payday loan or title pawn! Talk about USURY LAWS!
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).
