I always viewed toxic financing as debt converted to shares at fractions of the current share price.
The conv debt here has conversion prices of .10-.16, with no clauses to lower the convertible rate.
On October 26, 2009, the Company issued 12% convertible notes to two investors with an aggregate face value of $20,000. The principal amount of the notes and interest is payable on October 26, 2011. While the note is outstanding, the investor has the option to convert the principal balance and interest, into common stock at a fixed conversion price of $0.10.
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