IronRidge Deal
Pursuant to an Order Approving Stipulation for Settlement of Claims between Ironridge Global IV, Ltd. (“IV”) and the issuer on November 10, 2011, in settlement of $3,021,505.65 in accounts payable of the issuer owned by IV, IV is entitled to that number of shares of the issuer’s common stock equal to the claim amount and reasonable fees, divided 80% of the following: the arithmetic average of the individual daily volume weighted average prices of any five trading days during such period. Based on the issuer’s $0.63 closing share price on November 9, 2011, that would equate to approximately 6,636,222 shares.
For purposes of calculating the percent of class, the reporting persons have assumed that there were a total of 62,894,262 shares of common stock outstanding immediately prior to the issuance of shares to IV, such that 6,636,222 shares issued to IV would represent approximately 9.54% of the outstanding common stock after such issuance.
A portion of the agreement...
