Cross Atlantic Commodities Inc. (fka CXAC)

[insureman]

And for the relatively new people...

From the May 10Q, the company has a debt from two years ago that consists of convertible notes. The increase in the O/S from 25 million to 500 million in the last 2 months may be due to conversion, not dilution.

(7) SECURED CONVERTIBLE NOTES

On December 27, 2006, the Company entered into a Securities Purchase Agreement with four accredited investors ("Note Holders") for the sale of an aggregate of up to $1,000,000 of Callable Secured Convertible Notes (the "Convertible Notes") and warrants to purchase up to 15,000,000 shares of its common stock (the "Warrants"). The proceeds related to $600,000 of Convertible Notes and the Warrants were received on December 27, 2006 and an additional $150,000 of the Convertible Notes were issued on February 22, 2008. In connection with the issuance of the additional $150,000 of Convertible Notes, the Company also issued additional warrants to purchase up to 10,000,000 shares of its common stock (the "Additional Warrants"). The Company has granted the Note Holders a security interest in substantially all of the Company's assets.