The notes are not being sold now, they were sold a while ago, look in the 10-Q or one of my recent posts where I list the notes. And my list may not have been complete b/c a note from a year ago, because Mirage went out of compliance for long period of time, may never have been exercised, and we may be seeing that note right now, I am not dead sure but it appears to be, specifically:
"Convertible debenture, unsecured, interest bearing at 12% per annum, issued May 1, 2019 in the amount of $103,500 with fees of $3,500, cash proceeds of $100,000, convertible at October 28, 2019 with conversion price at a discount rate of 49% of market price which is the average of the lowest trading price during the twenty trading day period ending on the latest complete trading day prior to the conversion date, maturity date of February 28, 2020. This note becomes convertible on October 28, 2019. "
My thought is that after one year, even if the company is not in compliance, the lender can push for a conversion and right to sell, that might be going on now, like I said I dont know for dead sure.
Mirage had two notes in May 2019 and then the notes in August and September, and no new notes since then.
It doesnt matter about all the potential, the company needs money to survive, and even without much taken in salary, the expenses revolve more around trips to Mexico, lawyers and accountants, it's just not cheap to do all of that.
The company can raise money as they have, and EITHER use the money for expenses, which is the best use of money, or they can pay off notes. If they pay off notes, there is a 50% pre-payment penalty which basically ensures for the lender that they make a decent amount of money, at least comparable as if they requested a conversion to shares, so either way they win. Also very unfortunately for us, Mirage is constantly behind in filings, and that means default adding 50% to the loan, EVEN IF they go into default in the 6 month waiting period before they can convert and come out of default in that period, it doesnt matter, if they touch default at all, the penalty applies, resulting in just exhorbitant costs for these loans, which is why if they can do a private placement with some investors, and use the money for day to day operations, that's the best option and if you go thru the filings you'll see that that's what they've done more lately, and that's a good thing:
In the month of October 2019, the Company sold 2,000,000 shares of common stock to investors for cash proceeds of $80,000.
In January 2020, the Company offered and sold 4,200,000 shares of common stock at $0.035 per share for $147,000.
In March 2020, the Company offered and sold 3,083,334 shares of common stock at $0.06 per share for $185,000.
So I dont believe the company used any of that money to pay off notes, BUT, I do think they some of that was supposed to be earmarked for that purpose, I dont remember of dead sure. Its a fair amount of money.
AI
