We're 21000 strong and growing,hopefully. Its been a long road here for certain,and appreciate all the great DD from yourself and the many others over these years.
Just to add a little to the funding comments so far:
1)CD =$500K
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a) 5% convertible below .09
b)10% "may be" converted vwap >.09
c)10% "may be" converted every .02 above .09
d)formula = pps/10,divided into $x= y
(.075/10,divided into $25,000=3,333,333)
Plus($25000 divided by .075=0,333,333)
for every($25k of $500K @.075=3,666,666)
the max for the 500K@.075= 73,333,333 as stated in S1
2)EIA =$5M
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a)Purchase $250K worth of shares every 30 days at the current VWAP
b)"shall" purchase $500K >.09 10 day vwap
c)"shall" purchase additional $500K for each .02 above .09
3) Additional $5M purchase option
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a)May purchase an equal amount of EIA shares @.21 on that investment date.
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Being that the $500K CD alone is covertible to 73,333,333 @.075(as stated in S1)it's encouraging that they only registered 50M to cover both eia and cd.Sounds as if they expect higher prices.
"....which Shares may be issuable pursuant to the Debenture and the EIA."
If the CD were to stay @ .075 it would take 20 months to convert. So i like the terms in the personal guarantee of Mr Clarks' property. LaJ has the option of conversion at higher prices but only nine months max on the guarantee. Its a risk for them to wait to convert the CD, for more shares at a later date with lower prices.They can wait for possible lower prices but the clock is ticking on the property if they do,it encourages them to convert at higher prices.
The guarantee terminates:
a)the earlier of nine months
b)the conversion of the entire principal amount or
c) the date that La Jolla has converted at least $350,000 and above .09
Will be watching the Q2 due out in August closely in the hopes of finding out if LaJ is purchasing the additional shares @.21.Might be able to figure it out from the paid in capital,then again maybe not.
Just the way im reading it,corrections welcome
glta
