Greg
Convertible Debentures - means dilution. greg - keep posting the SEC filings - they paint the true picture.
What are the conditions??? These are the answers you should be looking for in the SEC filings and ask Kelly Jones IMO.
Read this To cover our cash requirements, we received $90,000 from sale of assets used in our theme park operations, issued $35,000 in notes to non-stockholders, utilized our cash on hand in the sum of $98,442, increased our book overdraft by $14,385 and drew down $179,032 under our equity line of credit.
This means IMO the company is extremely desparate for cash to run the company. Notes - debt and stock/dilution?, Overdraft - debt, equity line - debt and dilution?
On July 12, 2002, we entered into an agreement with Dutchess Private Equities, L.P., pursuant to which Dutchess and other investors participated in the private placement of $450,000.00 in convertible debentures, as well as a private equity line of $5,000,000.00 over the next two years. Registration of the shares to be issued under the terms of the agreement was accomplished pursuant to the terms of an SB-2 filed with the Securities and Exchange Commission on August 12, 2002, and which became effective on September 2, 2002. Dutchess has fully funded the debentures. As of June 30, 2003, the balance owed on the debentures to Dutchess had been reduced to $209,967.
The Dutchess private equity line may not be a viable funding mechanism, as the price and volume of trading in our shares may be too low to make that source of financing attractive. To date we have met our capital requirements by acquiring needed equipment under non-cancelable leasing arrangements, through capital contributions, loans from principal shareholders and officers, certain private placement offerings, and the Dutchess convertible debentures. For the six months ended June 30, 2003, the net loss from continuing operations was ($794,791). Approximately $474,609 of the loss was attributable to non-cash charges. After taking into account the non-cash items included in that loss, our cash requirements for continuing operations were approximately $320,182. In addition, we repaid $75,913 in principal amount of notes and used $20,764 in discontinued operations, bringing total cash requirements to $416,859. To cover our cash requirements, we received $90,000 from sale of assets used in our theme park operations, issued $35,000 in notes to non-stockholders, utilized our cash on hand in the sum of $98,442, increased our book overdraft by $14,385 and drew down $179,032 under our equity line of credit.
These are my personal comments, observations, opinions and should not be relied upon for any investment decisions, and as always read the SEC filings for the facts of the company
