$GRCK Here's all the convertibles from our books, and why I believe they are mostly paid off. One of the best times to buy a solid penny stock is when the books are almost clear of debts.
This is how I understand the convertibles in our filings. I tried making it as simple as possible. Here are all the convertibles just laid out in a short summary. In one of the notes below, I included the entire details of that note and you will better understand why when you read that part.
$100k - due jan 23 18'. Converts at .04 or 60% of the lowest over 20 trading days
$24k - due on feb 24 18'. Converts at .03 or 60% of the lowest over 20 days
$36k- due on feb 28 18'. Converts at .03 or 60% of lowest over 20 days
$90k - due on dec 1 17’. Converts at 55% of lowest over 20 days
$90k- due mar 19 18'. Converts at .03 or 55% lowest over 20 days
$60k- due mar 9 18’. Converts at .03 or 55% lowest over 20 days
$66k- due dec 1 17’. Converts at 50% lowest over 20 days
$15k- due mar 9 18’. Converts at .03 or 55% lowest over 20 days
$30k- due apr 18’. Converts at .03 or 55% lowest over 20 days
$60k- due feb 18’. Converts at 61% of the two lowest trading days for 15 days
$33k- due feb 18’. Converts at 61% of the two lowest trading days for 15 days
$300k- Received $30k originally. First trance is due aug 17. The lender has the right to convert the principal amount and unpaid interest of the loan at a rate of 56% of the lowest trading price during the prior 20 days of conversion. However, if the stock price is below $0.10 then the loan can convert at a rate of 46% of the lowest trading price during the prior 20 days of conversion. On October 27, 2016, the Company received the second tranche of $30,000 with an original issue discount of $5,000. The second tranche is due on October 27, 2017. On April 20, 2017, the Company received the third tranche of $45,000 with an original issue discount of $10,750. The third tranche is due on April 20, 2018. During the six months ended June 30, 2017, the lender converted $7,561 of principal into 360,000 shares of common stock. As of June 30, 2017, the principal balance owed is $67,439. <--- Company has only received $105k of this and already paid off $40k (hence the converting of notes earlier than maturity date).
If the company takes the additional $195k of the note above in the future, that will also be a convertible. However, the company could decide to do something more intelligent such as offer the remaining CD Noteholders a moratorium on converting their shares at discounts that way the company could offer a set strike price secured by Preferred Shares. <--(I must thank a friend for that suggestion BTW)
$100k + $24k + $36k + $90k + $90k + $60k + $66k + $15k + $30k + $60k + $33k+ $67k = $671,000 <--- This is the amount of convertible debt we had starting this Q
Lets do some math on the debts. I am going to "low-ball"(conversion prices) my expectations that way we aren't caught off guard. The lowest trading price over the last 20 days had been .0091 up until the last 5 days, so we aren't going to take .0083 into consideration. Since the price is under .10, .04, .03 (all prices that change conversion features with different note holders) we are going to do a steady Conversion of 52% of the lowest trading price. So we are going to do conversions at a steady rate of .004732. Our OS was 27 mil per last filing (Q). This means we have added roughly 114 mil shares to our OS.
114,000,000 x .004732 = $539,448 <--- That is how much debt has been converted if we absolutely low ball the heck out of conversion prices.
Add the recent cross-trades in the last 5 days and I believe we have converted an additional $60k in debt, at a minimum. That would mean roughly $600k in debt has been converted so far and we have roughly $70k more to convert. The key thing to remember is that I low-balled the conversion prices.
Lets say the average shares converted were more around 55% of the lowest price and that the lowest price was .0091.
55% x .0091 = .005005
Then we would simply do...
114,000,000 x .005005 = $570,570 <--- More than likely, that is how much debt has been converted as of Nov 7th 2017. Then we add the additional $60k converted over the last 5 days and I'd bet we have converted closes to $630k in debt. That would leave roughly $30-$40k in debt left to convert in order to clear our books.
