Steve1,
I didn't that portion in the 8K where did you get it?
In the 8k it says that "CSMG has the right to prepay
any amount that Lajolla elects to to convert if CSMG's stock
is less than $.38 per share by making a payment of 118%
of the dollar amount converted."
In the 8k it also states"commencing 6 months from the date of the first secured note in an amount not less than $250,000 so long as THERE IS NO EVENT OF DEFAULT as defined under the first convertible debenture and that that the average volume
weighted average price of CSMG's stock is not less than $.25
per share for every period of ten consecutive trading days
during the termof the note".
It appear that we are in that default period where the stock
is less than $.25 we are in the soup.
To pay for the $125,000 advanced to CSmg plus 6 percent interest CSMG would have to sell at least enough shares
to meet the payment of 118 of $125k that equlas $147.5K
divided by an average price of $.20 per share would equal about 737,500 shares that would need to liquidated to raise cash to payback La Jolla if that is what is happening.
I don;t know if that is for sure if that is what is happening
but the volume of shares on sell side is intimidating
to say the least on no apparent news and for no logical
reason.
Regards,
bbhuey
.
