FormCap Corp (FRMC)

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You have to refer to the conversion features, and warrant valuation. The lender(s) have no way out given the conversion feature, thus, demand for payment. Refer again:

On May 16, 2010, an addendum was signed whereby the Company paid the Lender an extension fee of USD$10,000.00 on signing and a further USD$10,000 on the due date, October 15, 2010. The loan conversion featured was also modified such that any outstanding principal sum is convertible into units at $0.10 each (maximum 4,000,000 units), each unit consisting of one fully paid common share and one share purchase warrant exercisable within two years at USD$0.15 per share.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7577746


Actually, downright hilarious.