that was a dump trigered by my buy at .003. That is why I waited till 3:59:55 to submit my order. These bastards are still pulling the same crap.
Here is an exerpt from their 10-Q.
On February 26, 2007, Pacific Gold issued debentures with a face value of $2,440,000 and warrants to purchase up to 6,000,000 shares of common stock for net proceeds of $2,141,000 after fees and commissions of $299,000. The Company received $1,035,000 of the gross proceeds on February 26, 2007, $805,000 on April 11, 2007 and it received the final advance of proceeds of $600,000 on June 25, 2007. A description of the notes is as follows:
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Maturity: The notes mature on February 26, 2009. The note-holder may elect at any time to convert its notes into shares of common stock at the conversion price (as described below). The lender is limited to total ownership of 4.99% of the outstanding shares of Pacific Gold at any time, so the ability to convert is limited.
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Prepayment Obligations: The Company is required to make payments of $222,000, subject to certain adjustments, in cash or shares of common stock at the conversion rate of the lower of (i) $0.18 per share or (ii) 80% of the average of the two lowest volume weighted average prices of the common stock during the ten consecutive trading days immediately preceding the installment due dates as defined in the Convertible Debenture starting on July 1, 2007. The note holder has the option to defer payments until the maturity of the note.
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Interest: Interest accrues at 10% on the outstanding face value of the debenture.
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Conversion and conversion price: The number of shares of common stock shall be determined by dividing the amount owed by $0.18. The conversion price may be adjusted from time to time upon the occurrence of certain specified events considered to be dilutive to the debenture holder.
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Warrant: In connection with the financing, a warrant to purchase up to 6,000,000 shares of common stock, with an exercise price of $0.216 per share and expiring February 26, 2012. In October 2007 the exercise price of these warrants was reduced to $0.18.
