Convertibles, Series C, Series E, Penalties.
Here is whats left from the last 10Q for convertibles with maturity dates :
11-6-19 $423,000
11-28-19 $115,000
1-15-20 $79,500
2-15-20 $64,500
2-15-20 $300,000
3-5-20 $82,500
3-14-20 $118,000
3-24-20 $178,750
4-3-20 $200,000
4-8-20 $150,000
5-17-20 $82,500
5-17-20 $165,000
5-29-20 $115,000
6-3-20 $192,500
6-28-20 $118,000
For a grand total of $2,384,250. These can be paid off early. They have done it in the past. There is usually a penalty associated with early payoff, but they have to weigh it vs outstanding interest that's left.
Series C according to the 10Q was issued to fund the acquisition of PT MDU. There were 300,000 shares at a face value of $25. They were going to list this stock on the OTCQB. $2.5 mil to $3.0 mil was going to be used for the acquisition. They never sold any. This was what the withdrawal of registration was related to today. Getting rid of the Series C. Possibly because they no longer need this avenue of funding. Or the PT MDU acquisition goes away, which is what I thought awhile ago. Hence the KPOP mini stores. Why use their kiosks when you can make your own. An acquisition like this made sense before getting a large amount of money to do your own thing.
Series E was issued to Edwin for negotiating the Wahana deal. 200,000 shares valued at the time at $3,559,417. Or 15% of the fully diluted common shares. Curious to see in the next 10Q what becomes of this. Maybe they say it was prepayment for the Gabriel deal instead.
You want to know what a delinquent filing gets you when it comes to convertibles? How about a penalty of $582,000. Added up all the penalties in the convertible section related to the 10K that was filed late. Not good.
If funding comes through, the convertibles that are beneficial to pay off need to go. If this quarter is like last, they probably added another $1 mil. So figure a total around $3.5 mil to get rid of them all. The $25 mil can have a huge impact on this company. It sure as hell can make them debt free in a heart beat, with plenty left over.
Looking forward to good news tomorrow or Friday. Go KPAY!
