Medizone Intl. (fka MZEIQ)

[Tane61]

Medizone International defaults on unsecured convertible promissory notes


Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

The Involuntary Proceeding triggered an event of default under the unsecured convertible promissory notes (collectively, the “Notes”) in the aggregate principal amount of $305,000 that the Company issued to the Investors on January 31, 2018 pursuant to two identical Securities Purchase Agreements dated such date. The event of default resulted pursuant to Section 3.7 of each Note, which provides that “bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors [being] instituted by or against the [Company] or any subsidiary of the [Company]” constitutes an event of default with respect to the Notes. Pursuant to Article III of each Note, the Company has no right to cure the event of default.

Pursuant to Article III of each Note, upon the occurrence of the event of default resulting from the Involuntary Proceeding each Note “shall become immediately due and payable and the [Company] shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 140% (plus an additional 5% per each additional Event of Default that occurs hereunder) multiplied by the then outstanding entire balance of the Note (including principal and accrued and unpaid interest) plus Default Interest, if any, plus any amounts owed to the Holder pursuant to Sections 1.3(g) hereof (collectively, in the aggregate of all of the above, the ‘Default Sum’), and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.”

The Company estimates that the Default Sum referenced above was $448,619.08 as of April 23, 2018.

https://ih.advfn.com/p.php?pid=nmona&article=77252121#EX99-1_HTM

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Medizone International Announces Commencement of Involuntary Bankruptcy Proceedings Against the Company


KALAMAZOO, Mich., April 20, 2018 /PRNewswire/

Medizone International, Inc. (OTCQB:MZEI) or Medizone, manufacturer of the AsepticSure® system, today announced that certain creditors of the Company have commenced an involuntary bankruptcy proceeding under Chapter 11 of the United States Bankruptcy Code against the Company. The creditors include Mr. Edwin G. Marshall, the former Chairman and Chief Executive Officer of the Company, and Dr. Jill C. Marshall, the former Director of Operations of the Company. The Company is evaluating its options in light of the involuntary bankruptcy proceeding.

https://www.prnewswire.com/news-releases/medizone-international-announces-commencement-of-involuntary-bankruptcy-proceedings-against-the-company-300633657.html

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Nevada Bankruptcy Court Case 3:18-bk-50412 - Medizone International

https://app.courtdrive.com/filings/nvbke_371614-3-18-bk-50412-medizone-international-inc