Shamika 2 Gold, Inc. (fka SHMX)

[thecrusher2011]

Read this very carefully.

"On April 28, 2011 the Company issued a Secured Convertible Note in the amount of $50,000 to Asher Enterprises Inc. due January 28, 2012 and bearing interest at the rate of 8% per annum. The note is convertible into common shares of the Company at any time from April 28, 2011 and ending on the complete satisfaction of the Note. The conversion price shall equal the Variable Conversion Price defined as 58% multiplied by the Market Price defined as the average of the lowest 3 Trading Prices on the OTCBB during the 10 day trading period ending one day prior to the date of Conversion Notice. In the event of default, the Note is immediately payable. The minimum amount due in default is 150% x (outstanding principal + unpaid interest). As of September 30, 2011, $15,799 in unamortized discount remained associated with the beneficial conversion feature. On September 16, 2011, the Conversion Price per share of Common Stock was amended to thirty one percent (31%) of the average of the three lowest prices, as defined, of the Company’s Common Stock for the ten trading days preceding a Conversion Date). "

http://www.sec.gov/Archives/edgar/data/1330323/000114420411063591/v239854_10q.htm
Now ask yourself a question, who would invest in a company that is discounting it's shares to others so much that they only have to pay 31% of what you pay? Also ask yourself why they don't find better terms? I know that I would personally loan this company money if I got as little as a 20% discount, wouldn't you?