Wednesday, July 02, 2008 9:13:39 AM
Humm... more shares or default...
We are currently in discussions with Mr. DeLuca regarding options to extend the maturity date, refinance and/or convert all or a portion of the Convertible Note and accrued interest thereon into equity at a lower conversion price on or before its maturity on October 19, 2008. There can be no assurance that we will be successful in our negotiations with Mr. DeLuca and other parties or that the terms of any such refinancing or conversions will not result in the issuance, or potential issuance, of a significant amount of equity securities that will cause substantial dilution to our stockholders. In the event we are not successful, any collection actions by Mr. DeLuca could have a material adverse affect on the liquidity and financial condition of our Company and our ability to secure additional financing. The default rate of interest on our Convertible Note is 17.5%. Additionally, a default on our Convertible Note would trigger a cross default in our obligations under our Commercial Finance Agreement which would result in an acceleration of our obligations and subject us to a default rate of interest there under. To the extent we have any borrowings outstanding at such time, such a cross default would further exacerbate our liquidity position and have a material adverse affect on our financial condition and we may not be able to continue as a going concern.
what's left to convert? 6 mil or so?
successfully obtaining sufficient cash resources to pay $3,451,478 on October 19, 2008
I'm about exhausted here....
We are currently in discussions with Mr. DeLuca regarding options to extend the maturity date, refinance and/or convert all or a portion of the Convertible Note and accrued interest thereon into equity at a lower conversion price on or before its maturity on October 19, 2008. There can be no assurance that we will be successful in our negotiations with Mr. DeLuca and other parties or that the terms of any such refinancing or conversions will not result in the issuance, or potential issuance, of a significant amount of equity securities that will cause substantial dilution to our stockholders. In the event we are not successful, any collection actions by Mr. DeLuca could have a material adverse affect on the liquidity and financial condition of our Company and our ability to secure additional financing. The default rate of interest on our Convertible Note is 17.5%. Additionally, a default on our Convertible Note would trigger a cross default in our obligations under our Commercial Finance Agreement which would result in an acceleration of our obligations and subject us to a default rate of interest there under. To the extent we have any borrowings outstanding at such time, such a cross default would further exacerbate our liquidity position and have a material adverse affect on our financial condition and we may not be able to continue as a going concern.
what's left to convert? 6 mil or so?
successfully obtaining sufficient cash resources to pay $3,451,478 on October 19, 2008
I'm about exhausted here....
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