There are plenty of shares out there being held by people at far less than 0.01. In the 3rd quarter filing alone, a spree of stock payouts was recorded. I have included this below. Add it up - hundreds of millions of shares were payed out at way, way below 0.01. And that doesn't include the fourth quarter of last year or the first quarter of this year when all the director payouts will be recorded (all at the 0.0001 market price in January - so lets say another several hundred million). In addition, they paid out another 97,000,000 to Yorkville for debenture conversions on their ridiculous amount of debt in the 3rd quarter. The numbers for the fourth quarter and first quarter of this year will be several hundred million more to Yorkville (all in the price range of 0.0001-0.001). So, there are plenty of shares out there ... that's why they want to do the 300-1 split ... because they have actually maxed out the total possible number of shares and they need/want to keep on handing over these ridiculous share payouts to insiders while everyone else gets screwed. This thing may double or even triple on some churning (which makes a few bottom feeders some money, which is cool), but there is no way it is going back to anything close to 0.01 ... there are just too many shares and too many feed bags on the inside that are crying out to be filled. JMO
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UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
During the quarter ending September 30, 2008, the following common shares of the Company were issued:
In August, the Company issued 86,849,782 shares to Viejo Coro in satisfaction of a note payable in the amount of $46,006, accrued interest of $8,663 and unpaid performance bonuses of $14,388 earned in 2007.
In August, the Company issued 5,000,000 shares to Koger Consulting in satisfaction of $4,500 in accrued consulting fees.
In August and September, the Company issued 30,000,000 shares to Arturo Fernandois in satisfaction of accrued consulting fees of $17,000.
In August, the Company issued 4,375,000 shares to YA Global Investments, L.P. as an inducement to loan the Company $37,500 under two note payable arrangements. At the time of issuance, the value of the shares was equal to 10% of the principal balance of the respective notes. These notes payable bear interest at 18% and mature in December 2008.
In September, the Company issued 1,200,000 shares to Jim Suthers, 6,000,000 shares to Raphael Cariou, and 12,000,000 shares to Amy Spencer as inducements to lend the Company $5,000, $25,000 and $50,000, respectively. At the time of issuance, the value of the shares was equal to 10% of the principal balance of the respective notes.
These notes payable bear interest at 18% and mature at various dates throughout the first quarter of 2009.
In September, the Company issued 8,000,000 shares to Linda Robison in satisfaction of $4,000 in accrued services.
In September, the Company issued 12,500,000 shares to Gregory Sichenzia in satisfaction of $5,000 in accrued legal fees.
In the third quarter, the Company issued 17,512,890 shares to Raphael Cariou for $19,590 in deferred salary.
In the third quarter, the Company issued 1,085,482 shares to Bob Byam for $1,152 in deferred salary.
In the third quarter, the Company issued 16,435,136 shares to Jon Mandrell for $16,154 in deferred salary.
In the third quarter, the Company issued 1,343,284 shares to Kevin Sikorski for $1,100 in deferred salary.
In the third quarter, the Company issued 6,386,440 shares to Jim Suthers for $5,542.63 in deferred salary.
In the third quarter, the Company issued 8,960,000 shares to Frank Robison for $9,284 in accrued salary, bonus and paid time off.
In the third quarter, the Company issued 15,000,000 shares to Lloyd Spencer for $14,680 in deferred salary.
In the third quarter, the Company issued 15,000,000 shares to David Hyams for $9,221 in deferred salary.
In the third quarter, the Company issued 16,890,000 shares to Martin Harvey in satisfaction of a $13,643 commission earned on a sale.
In the third quarter, the Company issued 1,500,000 shares to Sara Grand for a $750 bonus.
In the third quarter, the Company issued 1,500,000 shares to Alan Yoshinaga for a $750 bonus.
In the third quarter, the Company issued 1,500,000 shares to Rob Mackie for a $600 bonus.
In the third quarter, the Company issued 94,551,163 shares to Connie Weisel towards salary and bonus due to her late husband, Walt Weisel, former CEO of the Company. The Employment Termination and Retirement Agreement between the Company and
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AI
