Advantego Corporation (ADGO)

[gold-nugget]

Our Series B contingent convertible preferred stock is convertible for common shares of our stock at the conversion ratio of 250 shares of common stock for every 1 share of Series B contingent convertible preferred. We have no registration obligation with respect to the shares of Series B contingent convertible preferred stock issued. Each holder of our Series B contingent convertible preferred stock also holds a one-year option to purchase a similar amount of Series B preferred stock at the same price as this initial purchase.

We have previously used the loan proceeds for general corporate purposes. We have reduced the debt on our balance sheet for which we have exchanged our Series B contingent convertible preferred stock and made a corresponding entry to the equity section of our balance sheet.