SafeCode Drug Technologies Corp. (fka SAFC)

[appalled]

"The License Agreement provides for certain adjustments in the event that Safecode's shares are not equal to $0.70 or greater than that price twelve months after the effective date of the agreement"

This is accurate but the problem is what the adjustments are. From the actual license agreement:

"the Parties agree: (i) to renegotiate the terms of this License Agreement and the grant of License hereunder; and/or (ii) Licensee shall issue additional restricted Shares so that the Shares initially issued pursuant to this License Agreement, together with the additional Shares issued following the 1st anniversary of this License Agreement, shall equal the License Consideration."

So what this means is that if the other party refuses to renegotiate the contract, SAFC must issue them enough new shares of SAFC stock to cover the remaining $5.2 million guaranteed value of the contract.


Here is the link to the contract itself.

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=8927494-5465-22767&type=sect&TabIndex=2&companyid=855318&ppu=%252fdefault.aspx%253fcompanyid%253d855318