Itronics Inc (ITRO)

[abnpayne]

Was Fertilizer Company Guilty of Counting Chickens?

Seems like they were banking on this share increase?

This loan seems reasonable
On October 23, 2007, the Company entered into a Securities Purchase Agreement with three accredited investors (the "Investors") for an aggregate amount of (i) $275,000 in secured convertible notes, and (ii) warrants to purchase 15,000,000 shares of the Company’s common stock (the "Financing"). The Company anticipates that the proceeds of the Financing will be used to advance its eight part business plan which was summarized in its press release issued by the Company on June 3, 2005. The Financing will provide working capital to expand GOLD’n GRO fertilizer sales, EPA registration of the GOLD’n GRO Guardian deer repellant fertilizer, certain capital improvements to expand production capacity, and payment of existing debt obligations.


BUT THEN WE HAVE THESE...
In October 2007, we issued an aggregate of 14,500,000 common shares to four accredited investors upon the conversion of $19,720 in callable secured convertible notes.

In October 2007, we issued an aggregate of 15,267,170 common shares to four accredited investors upon the conversion of $15,267 in callable secured convertible notes.

In October 2007, we issued an aggregate of 7,750,000 common shares to four accredited investors upon the conversion of $6,975 in callable secured convertible notes.

Is this type of stuff normal? I am a noob.

If I were the first loan company, I would be extremely pissed...
Any insight is welcome.