15,000,000 shares for $22,500 in debt. Once again a conversion of $.0015/share for a stock trading in the pennies.
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The part I don't get is that the quarterly report balance sheet for the period ending December 31, 2010 only shows the $200,000 debt Notes originally belonging to David R. Houston as having carried over from prior to the purchase of the shell. That was the original amount of the debt Note before interest. The quarterly report for the period ending December 31, 2010 doesn't show any other past Notes or Interest on past Notes due.
How many different ways can $200,000 be split up? Favata had a $100,000 piece of that debt Note dating to November of 2002. Harvey had a $100,000 piece of that debt Note dating to November of 2002. That leaves nothing for Parkin. In order for Parkin to be able to legally convert his debt Note into free trading shares it would have had to be at least 12 months old so that disqualifies the $140,000 Jeff borrowed to buy the shell (which I think I was told came from Favata anyways).
I noticed the attorney that wrote the opinion letter removing the legend on the shares for Parkin so they could be free trading was W. Darrell Whitley. I've seen his name a lot in some SPNG research. He also popped up with TMSH briefly.
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So what's the real deal here? Did some of the almost $20 million in interest that Note earned since 2002 also get split up among these new creditors (Harvey, Parkin, and Favata)?
I'm hearing lots of talk about people not actually paying for these debt Notes. Is it possible some of these debt Notes were set up to include a kick back to the CEO or other insiders?
The fact that they all share the same overseas address is extremely suspicious.
Tom Favata says his debt Notes were paid for honestly and I tend to believe him, but I'm not in the practice of judging character. I'm in the practice of digging for facts. Paid for or not all the Notes have extremely discounted and extremely damaging conversion rates and were not set up with the best interest of the common shareholders in mind.
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