Look at this one! LOOK OUT!! TIME TO PAY UP CEO!! OR HAND OVER THE IP!! PAYMENT OVER DUE!! LEGAL ACTION IN EFFECT!! OMG!!
Power Up Lending Group, Ltd. v VNUE, Inc. :: 2019
The Plaintiff, Power Up Lending Group, Ltd., ("Power Up" or the "Plaintiff") commenced this action against the Defendants, Zach Bair ("Bair"), and Rob Thomas ("Thomas") (collectively the "Defendants") for damages stemming from a financing agreement between the Plaintiff and VNUE, Inc.. ("VNUE"), a corporation controlled by the Defendants.
Company issued a convertible note to YLimit, LLC in the principal amount of $100,000 with interest at 10% per annum and due on May 9, 2018. The note is secured by the Company’s rights, titles and interests in all the Company’s tangible and intangible assets, including intellectual property and proprietary software whether existing now or created in the future.
On April 12, 2018 and again on August 15, 2018, the Company and Ylimit, LLC entered into an amendment to the original secured convertible promissory note. The amendments increased the borrowing limits by $190,500 to a total of $707,500, and extended the maturity date to May 9, 2019. In addition, the amendment on April 12, 2018 modified the conversion feature to state that all borrowings under the note will be converted at 75% of the per share stock price in the equity funding, but in no event shall the conversion price be less than $0.0035 per share. This feature gave rise to a derivative liability of $135,900 during the period ended December 31, 2018 that is discussed below. During the twelve months ended December 31, 2018, the Company borrowed an additional $190,500. The balance of notes outstanding was $707,500 as of December 31, 2018 and the balance of the debt discount was $70,078.
On February 25, 2019, the Company entered into a cancellation of debt agreement relating to an outstanding note payable obligation of $15,500. The Company agreed to convert the remaining balance of $15,500 into 4,555,918 shares of Common Stock, or $0.003 per share.
On March 13, 2019, a former Company director voluntarily returned 4,555,918 shares of Company common stock to Treasury.
On March 25, 2019, the Company issued a convertible note to Power Up Lending Group Ltd. (See Note 6) in the principal amounts of $38,000. The note carries an interest rate of 12% per annum (22% on default) and a maturity date of March 25, 2020. The notes are convertible into shares of common stock of the Company at a 42% discount of the lowest closing bid prices for the Company’s common stock during the prior fifteen (15) trading day period prior to the date of conversion notice.
Subsequent to December 31, 2018, Power Up Lending Group (see Note 6) elected to convert $103,870 of outstanding principal and interest into 57,457,206 shares of the Company’s common at $0.0018 per share.
Subsequent to December 31, 2018, Crossover Capital Fund II, LLC (see Note 6) elected to convert $52,694 of outstanding principal and interest into 41,695,453 shares of the Company’s common at $0.0013 per share.
Subsequent to December 31, 2018, Black Ice Advisors, LLC (see Note 6) elected to convert $30,000 of outstanding principal and interest into 28,000,000 shares of the Company’s common at $0.0011 per share.
