BB's Stock Haven

[H2NRG]

Re: Cornell--from ITCV's 10Q 8/23/04...

On February 24, 2004, ITec (“holder” or the “Company”) executed an agreement with Cornell Capital Partners, LP whereby the Company issued $500,000 in notes payable. This note bears an annual interest rate of 24% beginning ninety (90 days) from the date of the note. The Company agreed to put in an escrow with the law firm, Butler Gonzalez, LLP, fifty million (50,000,000) shares of the Company’s common stock (“escrowed shares”) and twenty (20) advance notices of not less than $25,000 each. In May 2004, executed another agreement with Cornell Capital whereby Company agreed to put additional fifty million (50,000,000) shares of the Company’s common stock in the escrow. The law firm shall release these advance notices to the holder every seven (7) calendar days commencing March 1, 2004. In the event that the escrowed shares are insufficient to repay all amounts due under the note, the Company will immediately place in escrow additional shares of common stock sufficient to repay all the outstanding balance of the note. At the option of the holder, the interest due can be paid either by Company’s common stock or cash. The term of the loan agreement required the Company to pay a $190,000 loan origination fee. This amount is amortized over the term of the loan. The balance at June 30, 2004 is $25,786.


I'm trying to figure out what effect Cornell might have on what is likely to be an ITCV rally. Will this releasing of shares every 7 days from escrow possibly relieve the pressure on ITCV's share price from Cornell's selling? $25,000 per week.