Everyone else seeing this?? Weren't we told we'd never go toxic again?
At least we have 180 days to right the ship, but I really hate that this person is going to get a 40% discount. This is the kind of thing that can cause a downward spiral.. Luckily if the price holds, we're only looking at about 6 million shares at this point... but we saw what happened in late 2019 when deals like this, which seemed good at the time, ended up creating situations where we owed hundreds of millions of shares and we've been dealing with that since. Hate to see us going down this road. $10m revenue this year??? And.. why did it take so long to get this filing together??? With revenues that low, it seems like we should have been able to count that up pretty fast?
Anyway, this toxic item is from page 14 of the report. Please tell me if anyone is seeing this differently?
v) On March 26, 2021, the Company entered into a convertible promissory note with a non-related party for $83,000, of which $3,000 was an original issue discount resulting in cash proceeds to the Company of $80,000. The note is due on March 24, 2022 and bears interest on the unpaid principal balance at a rate of 12% per annum. Stringent pre-payment terms apply (from 15% to 40%, dependent upon the timeframe of repayment during the note’s term) and any part of the note which is not paid when due shall bear interest at the rate of 22% per annum from the due date until paid. The Note may be converted by the Lender at any time after 180 days of the date of issuance into shares of Company’s common stock at a conversion price equal to 61% of the lowest trading price during the 15-trading day period prior to the conversion date. As the note is not convertible until 180 days following issuance, no derivative liability was recognized as of March 31, 2021.
