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Re: Dave1865 post# 10750

Wednesday, 05/15/2013 10:17:16 PM

Wednesday, May 15, 2013 10:17:16 PM

Post# of 15249
Thanks for posting the quarterly report. Hopefully now that the quarterly report is in they will use this for their S-1 form they said they will be submitting. Recall that their plan, based on the investor conference call, was to use the financials from the first quarter of 2013 for their S-1 filing.

Also, glad to see who holds a majority of the shares (and rights to shares) out there. Sure wish I had as many as Mr. Kornegay.

Does anybody know if it's commonplace to list simply "investor" with no specific name attached to it for shares exchanges and debt conversion??

May 15, 2013 (today) is a very important day according to this quarterly report. Hopefully we don't experience a very large dilutive effect based on the following:

1. The Company purchased over 606 acres of undeveloped agricultural and wet lands that we are in the process of development in preparation for the building of the manufacturing plants. We have taken many steps in the initial preparation of this land, which includes zoning and planning, and in the initial engineering for the building of the manufacturing plant. On September 24, 2012, the Company entered into a lease and purchase agreement for the lease and purchase of a parcel of forty acres of land in Hardee County, Florida. The Company purchased the property for $1,000,000 on December 31, 2012 and entered into a mortgage and promissory note with the seller. The note requires a principal payment of $250,000 together with accrued interest at the rate of (3%) per annum due March 31, 2013, and the balance together with all accrued interest due on or before May 15, 2013.

2. On December 31, 2012, the Company entered into a sales and purchase agreement for the purchase of 566 acres of land in Hardee County, Florida that was adjacent to the 40 acres described above. The Company purchased the property for $7,250,000 and entered into a mortgage and promissory note with the seller. The note requires consecutive principal payments of $1,000,000 each, beginning on March 31, 2013, and on each March 31 thereafter, together with accrued interest at the rate of 5% per annum until all principal and interest are paid in full. The Company will have the right to prepay the full amount of the note (together with accrued interest) at any time without prepayment penalty or premium. On May 15, 2013 or anytime thereafter, the seller may demand payment for all or any of the outstanding principal and interest provided that notice is given to the Company prior to the 30th day preceding the due date of payment. In addition, the Company also granted warrants to purchase 6,000,000 shares of common stock, with an exercise price of $0.06 of which 1,000,000 warrants were exercised at closing and the remaining have an expiration date of December 31, 2013. The Company capitalized the value of these warrants using a Black Scholes valuation in the amount of $1,746,000 and are included in property, plant and equipment in the accompanying consolidated balance sheets.

3. Includes 16,500,000 shares of common stock, convertible preferred stock owned by Mr. Kornegay and/or B Group, LLC, which is owned by Mr. Kornegay, for 8,500,000 shares of common stock convertible within 60 days of May 15, 2013, warrants to purchase 17,375,000 shares of common stock exercisable within 60 days of May 15, 2013, and a convertible debenture series A of 11,776,785 shares of common stock convertible within 60 days of May 15, 2013. The address of Mr. Kornegay is c/o Bio Nitrogen, 8725 N.W. 18th Terrace, Suite 105, Doral, FL 33172.