WHO issued the note to whom? Was Augustine holding the note and VTI owed them, or was VTI holding the note and Augustine owed VTI? You say it was payable to VTI, so that suggests that VTI loaned Augustine Fund $3.3MM and the fund had to pay this back to VTI. But, in the next phrase you say it "was converted to 22MM shares"- What in the world are you talking about? 22MM shares of VTI when Augustine owes them - makes no sense?
IF the Augustine fund owed VTI (you said "payable to VTI") then Augustine would have to issue VTI 22MM shares of Augustine fund assets to VTI. The principle value of the shares must have been something like .15/share since we have no statement as to the interest, time frame, or other fees being assessed.
OR are you saying Augustine Fund walked in and paid Phil & family & mystery $3.3MM for 22MM shares of VTI of which VTI never distributed to Augustine? Essentially Augustine fund bought VTI shares at .15/share, then. No NOTE here or converting to be done unless you are saying Augustine held a note from VTI stating that VTI owed Augustine 22MM shares (so, payable TO AUGUSTINE, not TO VTI) that were never delivered to Augustine for some reason. Or are you stating that VTI gave Augustine 22MM shares for an agreed amount of $3.3MM of which Augustine never paid to VTI? VTI just gave shares away and never collected their debt?
How many total shares were in VTI at the time? Is this 22MM shares 99.9% of VTI.
VTI owned (note past tense, I am not talking present right now, we'll get to that later) 100% of Vergetech, did VTI own ANYTHING else or was Vergetech its sole asset.
