Quote:
I see you left out the most important piece which prevents the conversion at the lesser market price. How convenient to try and scare investors.
The max conversion amount in shares at $0.05 is 5.6 million shares. Nice try. Here is the actual contract verbiage.
The thing is the company could pay them in shares at $0.05 and then buy back 2 1/2 times as many with the $280,000 on the open market. Therefore causing a spike in share price and actually reducing outstanding shares by over 6 million in the process.
Lender Conversion Price. Subject to adjustment as set forth in this Note, the conversion price for each Lender Conversion (as defined below) shall be $0.05 (the “Lender Conversion Price”). However, in the event the Market Capitalization falls below $3,000,000.00 at any time, then in such event (a) the Lender Conversion Price for all Lender Conversions occurring after the first date of such occurrence shall equal the lower of the Lender Conversion Price and the Market Price as of any applicable date of Conversion, and (b) the true-up provisions of Section 11 below shall apply to all Lender Conversions that occur after the first date the Market Capitalization falls below $3,000,000.00, provided that all references to the “Installment Notice” in Section 11 shall be replaced with references to a “Lender Conversion Notice” for purposes of this Section 3.1, all references to “Installment Conversion Shares” in Section 11 shall be replaced with references to “Lender Conversion Shares” for purposes of this Section 3.1, and all references to the “Installment Conversion Price” in Section 11 shall be replaced with references to the “Lender Conversion Price” for purposes of this Section 3.1.
