This from May 2020
WARWICK, N.Y., May 13, 2020 (GLOBE NEWSWIRE) -- Ozop Surgical Corp. (OZSC), (“Ozop” or the “Company”), today announces that it has successfully reduced the number of active convertible note holders from 18 down to 4 and expects that number to be down to 3 shortly.
“I’m glad the number of noteholders has been significantly reduced, and we are looking forward to shifting our focus towards the closing of Power Conversion Technologies, Inc.” said Brian Conway, CEO. “We are on track towards completing the first payment to PCTI at the end of the month”.
About Ozop Surgical Corp.
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Very clear here they are stating a significant reduction to the Toxic Notes. Stated on Waypoint at the time they were looking to keep the OS below 100 million. As we know that didn’t happen ( Currently 3.1 billion ). So how soon after clearing down all the Toxic Debt, did they start issuing new notes.
For May / June alone here is the note activity. Clearly that PR was sent to deliberately mislead investors
On May 4, 2020, the Company issued a 12% convertible promissory note, (the “Note”) in the principal amount of $110,000, pursuant to a Securities Purchase Agreement we entered into with an investor. This note matures 12 months after the date of issuance. This note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to the lower of $0.50 or 58% multiplied by the average of the two lowest closing trading price or bid price during the 20- trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion. The Company received proceeds of $96,250 on May 6, 2020, and the Company reimbursed the investor for expenses for legal fees and due diligence of $13,750. This note proceeds will be used by the Company for general working capital purposes. In conjunction with this note, the Company issued a warrant to purchase 3,666,666 shares of common stock at an exercise price of $0.015, subject to adjustments and expiring on the five-year anniversary of the Issuance Date. The embedded conversion feature included in this note resulted in an initial debt discount of $100,000, interest expense of $5,526 and an initial derivative liability of $105,526. For the six months ended June 30, 2020, amortization of the debt discounts of $18,792 was charged to interest expense. As of June 30, 2020, the outstanding principal balance of this note was $110,000 with a carrying value of $16,042, net of unamortized discounts of $93,958.
On May 5, 2020, (the “Issuance Date”) the Company issued a 12% convertible promissory note, (the “Note”) in the principal amount of $162,000, to an investor. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $03 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.03 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. The Company received proceeds of $100,000 on May 13, 2020, and this note included an original issue discount of $62,000. This note proceeds will be used by the Company for general working capital purposes. The embedded conversion feature included in this note resulted in an initial debt discount of $100,000, interest expense of $151,512 and an initial derivative liability of $251,512. For the six months ended June 30, 2020, amortization of the debt discounts of $54,000 was charged to interest expense. As of June 30, 2020, the outstanding principal balance of this note was $162,000 with a carrying value of $54,000, net of unamortized discounts of $108,000. In conjunction with this note, the Company issued a warrant to purchase 4,325,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date.
On May 7, 2020, the Company issued a 15% convertible redeemable note in the principal amount of $30,000. This note matures on May 7,2021 and is convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company. The Company received proceeds of $25,000 on May 7, 2020, and this note included an original issue discount of $5,000, which was recorded as a discount against the debt to be amortized into interest expense through maturity This note proceeds will be used by the Company for general working capital purposes. The embedded conversion feature included in this note resulted in an initial debt discount of $25,000, interest expense of $17,828 and an initial derivative liability of $42,828. For the six months June 30, 2020, amortization of the debt discounts of $4,375 was charged to interest expense. As of June 30, 2020, the outstanding principal balance of this note was $30,000 with a carrying value of $4,375, net of unamortized discounts of $25,625.
On May 7, 2020, an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, purchased a convertible note issued by the Company on October 24, 2019, with a maturity date of October 24, 2020 (see above). The Purchaser acquired $200,000 of this note. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. The embedded conversion feature pursuant to this agreement resulted in an initial debt discount of $200,000, interest expense of $111,128 and an initial derivative liability of $311,128. For the six months ended June 30, 2020, amortization of the debt discounts of $200,000 was charged to interest expense. For the six months ended June 30, 2020, the investor converted a total of $200,000 of the face value and $16,922 of accrued interest and fees into 92,332,507 shares of common stock at an average conversion price of $0.00218. As of June 30, 2020, the outstanding principal balance of assigned note was $-0-.
On May 15, 2020, an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, purchased a convertible note initially issued by the Company on January 8, 2020, with a maturity date of January 8, 2021 (see above). The Purchaser paid $52,000 for the note. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. For the six months ended June 30, 2020, the Company recorded additional interest expense of $63,500 due to defaults of this note and the amount was added to the principal balance owed the Purchaser. The embedded conversion feature pursuant to this agreement resulted in an initial debt discount of $100,000, interest expense of $526,507 and an initial derivative liability of $626,507. For the six months ended June 30, 2020, amortization of the debt discounts of $25,000 was charged to interest expense. For the six months ended June 30, 2020, the investor converted a total of $66,454 of the face value and $5,246 of accrued interest and fees into 53,110,926 shares of common stock at an average conversion price of $0.00129. As of June 30, 2020, the outstanding principal balance of assigned note was $83,546, with a carrying value of $8,546, net of unamortized discounts of $75,000. This note was fully converted as of August 13, 2020.
On May 15, 2020, an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, purchased a convertible note initially issued by the Company on November 27, 2019, with a maturity date of November 27, 2020 (see above). The Purchaser paid $75,000 for the note. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. For the six months ended June 30, 2020, the Company recorded additional interest expense of $75,000 due to defaults of this note and the amount was added to the principal balance owed the Purchaser. The embedded conversion feature pursuant to this agreement resulted in an initial debt discount of $77,000, interest expense of $388,385 and an initial derivative liability of $465,385. As of June 30, 2020, the outstanding principal balance of assigned note was $115,500, with a carrying value of $52,398, net of unamortized discounts of $62,563. This note was fully converted as of August 13, 2020.
On May 28, 2020, the Company issued a 15% convertible redeemable note in the principal amount of $30,000. This note matures on May 28, 2021 and is convertible into shares of common stock at a conversion price equal to 50% of the lowest traded price for the twenty-five prior trading days including the day upon which a conversion notice is received by the Company. The Company received proceeds of $25,000 on May 28, 2020, and this note included an original issue discount of $5,000. This note proceeds will be used by the Company for general working capital purposes. The embedded conversion feature included in this note resulted in an initial debt discount of $25,000, interest expense of $19,346 and an initial derivative liability of $44,346. For the six months June 30, 2020, amortization of the debt discounts of $2,500 was charged to interest expense. As of June 30, 2020, the outstanding principal balance of this note was $30,000 with a carrying value of $2,500, net of unamortized discounts of $27,500.
On May 28, 2020, an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, purchased a convertible note issued by the Company on May 29, 2019 (see above). The Purchaser acquired $67,365 of this note. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. The embedded conversion feature pursuant to this agreement resulted in an initial debt discount of $67,365, interest expense of $443,420 and an initial derivative liability of $510,785. For the six months ended June 30, 2020, the Company recorded additional interest expense of $83,395 due to defaults of this note and the amount was added to the principal balance owed the Purchaser. For the six months ended June 30, 2020, amortization of the debt discounts of $67,365 was charged to interest expense. For the six months ended June 30, 2020, the investor converted a total of $47,090 of the face value and $3,000 of accrued interest and fees into 39,959,295 shares of common stock at an average conversion price of $0.00118. As of June 30, 2020, the outstanding principal balance of assigned note was $103,671. This note was fully converted as of August 13, 2020.
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On June 1, 2020, (the “Issuance Date”) the Company issued a 12% convertible promissory note, (the “Note”) in the principal amount of $127,500, to an investor. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. The Company received proceeds of $100,000 on June 1, 2020, and this note included an original issue discount of $27,500. This note proceeds will be used by the Company for general working capital purposes. The embedded conversion feature included in this note resulted in an initial debt discount of $100,000, interest expense of $103,250 and an initial derivative liability of $203,250. For the six months ended June 30, 2020, amortization of the debt discounts of $21,250 was charged to interest expense. As of June 30, 2020, the outstanding principal balance of this note was $127,500 with a carrying value of $21,250, net of unamortized discounts of $106,250. In conjunction with this note, the Company issued a warrant to purchase 6,375,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date.
On June 11, 2020, the Company issued a 12% convertible promissory note, (the “Note”) in the principal amount of $53,000, pursuant to a Securities Purchase Agreement we entered into with an investor. This note matures 12 months after the date of issuance. This note is convertible into shares of the Company’s common stock beginning on the date which is 180 days from the issuance date of this note, at a conversion price equal to 58% multiplied by the lowest closing bid price during the twenty trading day period ending on the last completed trading date in the OTC Markets prior to the date of conversion. The Company received proceeds of $50,000 on June 12, 2020, and the Company reimbursed the investor for expenses for legal fees and due diligence of $3,000. This note proceeds will be used by the Company for general working capital purposes. The embedded conversion feature included in this note resulted in an initial debt discount of $50,000, interest expense of $2,218 and an initial derivative liability of $52,218. For the six months June 30, 2020, amortization of the debt discounts of $2,849 was charged to interest expense. As of June 30, 2020, the outstanding principal balance of this note was $53,000 with a carrying value of $2,849, net of unamortized discounts of $50,151.
On June 23, 2020, an investor (the “Purchaser”) pursuant to a Debt Purchase Agreement, purchased a past-due convertible note initially issued by the Company on October 6, 2017 (see above). The Purchaser paid $60,000 for the note. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. For the six months ended June 30, 2020, the Company recorded additional interest expense of $52,500 due to defaults of this note and the amount was added to the principal balance owed the Purchaser. The embedded conversion feature pursuant to this agreement resulted in interest expense of $658.093 (since the purchased note was past its’ maturity date and was in default) with the offset recorded to derivative liabilities. For the six months ended June 30, 2020, the investor converted a total of $91,579 of the face value and $42,071 of accrued interest and fees into 99,000,000 shares of common stock at an average conversion price of $0.00133. As of June 30, 2020, the outstanding principal balance of assigned note was $20,921. This note was fully converted as of August 13, 2020.
On June 30, 2020, (the “Issuance Date”) the Company issued a 15% convertible promissory note, (the “Note”) in the principal amount of $129,500, to an investor. This note matures 6 months after the Issuance Date. This note is convertible into shares of the Company’s common stock beginning on the Issuance Date at $0.025 for the first three months after the Issuance Date. After the first three months after the Issuance Date, the conversion price shall be equal to the lower of (i) $.025 or 50% of the lowest trading price for the thirty-five trading days prior to the conversion. The Company received proceeds of $102,000 on July 1, 2020, and this note included an original issue discount of $27,500 and lender costs of $2,000. This note proceeds will be used by the Company for general working capital purposes. The embedded conversion feature included in this note resulted in an initial debt discount of $100,000, interest expense of $107,122 and an initial derivative liability of $207,122. As of June 30, 2020, the outstanding principal balance of this note was $129,500 with a carrying value of $-0-, net of unamortized discounts of $129,500. In conjunction with this note, the Company issued a warrant to purchase 6,375,000 shares of common stock at an exercise price of $0.02, subject to adjustments and expiring on the five-year anniversary of the Issuance Date
