The Ironridge deal was good for ECDC. Do not listen to these monkeys who tell you Ironridge will harm ECDC stock. There is a lot of misinformation being spread on this board about Ironridge. Ironridge has agreed to a number of important limitations that these bashers of ECDC stock are not telling you. Please read from the following paragraph about the limits put on Ironridge. This information was provided on May 25, 2012 by our CEO Kay:
"East Coast Diversified also entered into a definitive Stock Purchase Agreement with Ironridge to purchase $1.5 million in redeemable, convertible Series B Preferred Stock, which is convertible into common stock of the Company. Ironridge received no warrants. There are few restrictive covenants and no amortization provisions in the agreement. The transaction is subject to customary equity and closing conditions.
Under the Series B Stock Purchase Agreement, Ironridge has agreed to convert the shares at more than 285% of the current market price. "Ironridge is demonstrating confidence in our business plan and the direction of the operation, its decision and agreement to convert at a significantly higher PPS than current market price is indicative of this, but more importantly, is that we can now accelerate the development of our social media division 'WetWinds' and other projects we are working on."
Consistent with its long-only investment mandate, Ironridge represented that it has never shorted the Company's stock, does not hold any short position, and will not engage in or affect, directly or indirectly, any short sale of the common stock."
