Option time almost up:
On February 12, 2009, the Issuer (the “Company”) entered into an Exclusive Option to Purchase Unimproved Land with The Nacelle Corporation (the “Agreement”). Pursuant to the terms of the Agreement, the Company obtained a three (3) year option to purchase 4,840 acres of unimproved property in Tehachapi, California (the “Property”). In consideration for the option to purchase the Property, the Company issued a three (3) year $16 million convertible debenture which will earn interest at a rate of five (5%) percent per annum (the “Debenture”). The Debenture is convertible into shares of the Company’s common stock six (6) months following its issuance at the fixed conversion price of $0.5517 (subject to customary adjustment) subject to the limitation that the holder may not acquire in excess of 19.99% of the Company’s outstanding common stock at any given time without prior shareholder approval. In addition to the Debenture, the Company agreed to pay the land owner or its assignees the sum of $260,000.
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Amazingly Tony gave his old movie making pal David Dadon (owner of Nacelle) $ 260,000 and a 16 million dollar convertible debenture for a 3 year "option" to buy property owned by Nacelle.
Any bets as to whether the option will be excercised by 12th of February?
If not, David Dadon gets all his land back, $ 260,000, and a multi-million dollar claim against GSTY .
