Here are the notes I am concerned about. I would prefer that any deal they did simply resulted in paying them off and not getting shares, but I dont think that the company can enforce that IF thats what they were willing (and able of course) to do ...
I have been tracking this, and what I do know is that from 5/29 - 7/17 (and thru 7/31 as well) there were 16 million shares issued. The next data point will be out probably today or tomorrow. At say .005/share (estimate obviously I could be wrong) that's $80K converted which would cover the PowerUp note but not the JSJ one, or obviously a combination. What we don't know though is who has converted and how much, or as mentioned even how many shares that will be (for ex if they converted right now then the price wouldnt be as good for them). Very hard stuff to figure out, like filling in a jigsaw puzzle but with limited pieces.
Note 3
On December 4, 2017, the Company borrowed $53,000 from Power Up. The promissory note bears interest at the rate of 12% per annum and is due on September 15, 2018. The note is convertible into Company common stock at a Forty-five percent (45%) discount to the market price of our common stock. Market price is the average of the lowest one day trading price during a twenty (20) days preceding conversion. The note may be paid off during the initial 180 days at a specified premium. The Company may pay off the note during the initial 180 days at a premium. After the expiration of 180 days until the maturity date, the note may be paid off at a 150% premium. The Holder has voluntarily limited its conversion to no more than 4.99% of the Company's issued and outstanding common stock. This note went into default due to the Company's untimely filing of its Quarterly Report for the period ending January 31, 2018. A default penalty of $ 26,500 was assessed. As of April 30, 2018, none of this loan had been repaid and balance of the note was $79,500. This note became convertible into common shares on, or after June 2, 2018.
Note 4
On February 26, 2018, the Company borrowed $43,000 from Power Up Lending Group, Inc. The promissory note bears interest at the rate of 12% per annum and is due on November 30, 2018. The note is convertible into Company common stock at a Forty-five percent (45%) discount to the market price of our common stock. Market price is the average of the lowest one day trading price during a twenty (20) days preceding conversion. The note may be paid off during the initial 180 days at a specified premium. The Company may pay off the note during the initial 180 days at a premium. After the expiration of 180 days until the maturity date, the note may be paid off at a 150% premium. The Holder has voluntarily limited its conversion to no more than 4.99% of the Company's issued and outstanding common stock. This note went into default due to the Company's untimely filing of its Quarterly Report for the period ending January 31, 2018. A default penalty of $21,500 was assessed. As of April 30, 2018, $0 of this debt was converted and the Company issued no shares of common stock leaving a principal balance of $64,500. This note becomes convertible on August 25, 2018.
Note 5 - this is a big one
On January 5, 2018, the Company borrowed $75,000 from JSJ Investments, Inc., a Texas corporation. The promissory note bears interest at the rate of 12% and is due on January 5, 2019. The note has an original issue discount of $2,000. The note is convertible into Company common stock at a Forty-five percent (45%) discount to the market price of our common stock. Market price is the average of the lowest one day trading price during a twenty (20) days preceding conversion. The Company may pay off the note during the initial 180 days at a premium. After the expiration of 180 days, the Company may not pay off the note. The note may be paid off at maturity. The Holder has voluntarily limited its conversion to no more than 4.99% of the Company's issued and outstanding common stock. The Company has defaulted on this note under paragraph 10(a)(iv, xi, xii, xiii, xiv). The Company has not received any notice of default and associated default penalties remain unassessed by Lender.
AI
