Share Conversion is done.On May 9, 2013, the registrant executed into a securities settlement agreement with Redwood Management, LLC, a third party accredited investor in consideration for the third party assuming the registrant’s debt of $600,000. Pursuant to this securities settlement agreement, the debt becomes due April 29, 2014, allows prepayment at any time with a 25% premium and carries interest at the rate of 8% per annum on the principal outstanding. This note is convertible into common shares of the registrant at a conversion price of 55% of the lowest per share market trading price during the eight trading days immediately preceding a conversion date. On May 9, 2013, $50,000 of the debt was converted into 6,993,006 common shares at a conversion price of $0.00715 per share. The issuance is exempt under Section 4(2) of the Securities Act of 1933.
On May 9, 2013, the registrant executed a 12% convertible promissory note in the aggregate principal amount of $150,000 with Magna Group, LLC, a third-party accredited investor. The note has a maturity date of December 29, 2014, and allows prepayment of principal at a premium of 25% if paid before August 26, 2013 and 50% is paid after that date. The note is convertible into common shares of the registrant at 55% of the lowest trading price during the three trading days immediately preceding the conversion date. On May 9, 2013, $20,000 of the debt was converted into 2,587,982 common shares at a conversion price of $0.007755 per share. The issuance is exempt under Section 4(2) of the Securities Act of 1933.
Item 8.01 – Other Events
On May 9, 2013, the registrant executed an 8% convertible promissory note in the aggregate principal amount of $500,000 with Redwood Management, LLC, a third party accredited investor. The note is payable to the registrant in three installments: $100,000 due May 10, 2013, $200,000 due June 10, 2013, and $200,000 due July 10, 2013. The note proceeds will be used for working capital and to fund current business requirements. The note has a maturity date of January 29, 2014 and allows prepayment of principal at a 25% premium. Beginning October 29, 2013, the note is convertible into common shares of the registrant at a conversion price of 55% of the lowest share trading price during the eight trading days immediately preceding the conversion date.
As with Every Post on this or any message Board I post my Opinion but you can read the Filings and decide for yourself.
