The 950k convertible note owed to XPOI by CPFH was repaid early. Here is an excerpt below from page 11 of the CPFH 10Q filing released after the close today. I would guess that the 640K in cash received by XPOI gives them some capital to invest in the thriving pawn shop business (i.e. expand pawn loans). It's conceivable that they are planning to call some of the pref stock, although I would guess that it's too soon for that. The note was paid off at a discount, but XPOI may have already been carrying it at discount so not sure offhand if this will effect income.
Also a good move by CPFH (I own alot of CPFH shares in as well as XPOI) in paying off debt. Not a bad quarter by CPFH for a stock trading at 4 cents / share. From the CPFH 10Q:
Convertible Promissory Note - In October of 2006, the Company issued a $950,000 convertible promissory note to PawnMart, Inc., in a private placement. The unsecured note carried an interest rate of 6.5% per annum, payable semi-annually, and was scheduled to mature on October 15, 2016. The company negotiated with Pawnmart, Inc. to prepay the note at a discounted rate of $715,000, as of June 6, 2011. A payment of $640,000 was sent to Pawnmart, Inc., and a $75,000 promissory note was signed for the remaining balance due. This promissory note carries an interest rate of 6.5%, per annum, payable at the maturity date of the note, which is May 26, 2012.
