PowerLinx Inc (PWNX)

[nobusiness]

The terms of the PP seem to be attached to subscription agreements that require a 20% downpayment on what amounts to promissory notes. It is clear from the math that the strike price is 10 cents per share (20% down = $318,750; remainder due at a future date = $1,385,450; total = $1,704,200; ergo 10 cents per share for the 17,042,000 shares in the PP). I can only surmise that the 20% down provision of the subscription agreement allowed them the ability to offer a strike price lower than current market price (and they may have timed execution of the subscription agreements to hit the 20 cent stock price bottom). What is not at all clear from the 10-Q is the time period of the subscription agreements...my experience would say it is 3 years, but nothing this company has done seems to conform to any of my experience.