Something about the buyback just doesn't add up. If you have the cash to buy back stock, why would you get a loan at 20% interest.
On October 10, 2007, we entered into a convertible promissory note with North Atlantic Resources, Limited, the Selling Shareholder named in this prospectus and a Principal Shareholder. The note called for interest of 20% and was due on February 28, 2008. The conversion rate, giving effect to our January 15, 2008, 1 to 20 reverse split, was at the rate of $.002 per dollar of principal and interest converted. On January 11, 2008, the lender exercised its option to convert all of the principal and interest into shares of common stock. These shares are the shares covered by this Prospectus,
