Monday, February 17, 2020 11:25:47 AM
It is the consequences for default.
From the most recent note issued Feb 10 and filed on Feb 14.
So the note was in default by the time they filed it on SEC.gov. The original balance went up by 20% immediately, the 4% one time interest was due plus any fees and such. So they owe approximately $500k-$600K back in cash immediately or the equivalent of that in shares at a conversion price around .0075 as ~.015 was the low in the last 20 trading days. Half a million dollars at .0075 is another 66M shares added to the float. But hey the floats well over a billion so 66M shares is nothing, bring it on.
The September note did not have as bad of toxic terms in it, the January note had more, the Feb note even more. But it doesn't matter to the company, shareholders will buys these dilutive shares and they don't have to pay anything back. The company wins and keeps growing at the expense of early OTC investors.
What happens when they need more money next month and the month after and the month after that. The 7.5B A/S may not be enough to hold all these converting shares.
Also the Jan note had the clause to take on at their choice better terms from future notes. I think that the "market price conversion" is better than the .015 per share so with penalties if that note hadn't converted yet we are looking at another 90M+ shares diluting the float.
But all this doesn't matter because they are going to make $50-$100M in revenues this year. LOL
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