EcoloCap Solutions Inc. (fka ECOS)

[deal guy]

They were in default of the terms of the toxic debt from Q1 2014 (10-Q mentions the default) through July 1, 2017 (the date of the shareholder vote). My guess is some of the holders of the toxic debt were in fact moving the volume on the stock. The default was likely based on the failure to have adequate authorized shares to facilitate conversion.

The convertible debt of $585k mentioned in the 14 C is only the principal amount of the debt. There is likely an equal amount of interest accrued but not paid which also factors into the conversion. If you go back to the 2015 SEC filings you can see that the derivative value of the debt was 40% greater than the face value.

The other peice of debt that is out there is $1.5m owed to the stockholders and Hanscom. The 14 C refers to all debt being converted. I would assume this goes into their conversion calculations since they say upon the conversion of the debt they will issue 9.6m additional shares.

Remember the toxic debt converts into stock based on the closing price with a discount applied (20%) to the closing price to determine conversion. The toxic debt holders conversion or the regular debt conversion likely explains why the OS went from 6.6bn to 7.6bn since July 1.