I didn't say anything about buying shares. I said members of the Whelan family own, for all intents and purposes, all of the company's debt. So, when dilution occurs to payoff debt, those shares are issued to members of the Whelan family.
NOTE 8 – RELATED PARTY NOTES PAYABLE
On January 1, 2005, the Company entered into an unsecured revolving convertible promissory note agreement (“the Revolver”) with IBEX, LLC (“IBEX”) for a maximum limit of $2,000,000, with interest at the Prime Rate plus 2% (5.25% for the nine months ended September 30, 2010), and all accrued interest and principal due on or before January 1, 2015, whether by the payment of cash or by conversion, at the option of the holder, into shares of the Company’s common stock. The Revolver is convertible at various fixed conversion prices based on the Volume-Weighted Average Price (“VWAP”) which is calculated by averaging the 10 trading days preceding the date of note, which approximated the fair value of the Company’s stock at the date of conversion. IBEX, LLC is a related party limited liability company, whose President is a daughter of the President of the Company. The balance of the Revolver was $1,308,895 as at September 30, 2010.
In addition to the Revolver as described above, the Company has entered into the following convertible promissory note agreements with related parties:
Date Issued Principal Due Date Lender Conversion Amount Price
