BioNeutral Group Inc. (fka BONU)

[stervc]

BONU $10M Funding Source for Operations…

Below is a huge show of confidence that Southridge truly believes in BONU for them to give BONU such a huge amount of money in exchange for shares of BONU. The primary funding source for the BONU operations appears to be Southridge as indicated below:

http://www.southridge.com/


Below is confirmation from the 10-K that BONU filed with the SEC indicating the Equity Purchase Agreement for the $10 Million in funding:

http://www.sec.gov/Archives/edgar/data/1427030/000121390013000399/f10k2012_bioneutral.htm
On December 11, 2012, the Company entered into an Equity Purchase Agreement with Southridge Partners II, LP for an equity line of up to $10,000,000. Pursuant to the Equity Purchase Agreement, the Company has the right, at its discretion, to sell to Southridge up to $10 million of its common stock from time to time over a 36-month period. The Company will have the right, but is not obligated, to sell stock to Southridge depending on certain conditions as set forth in the Agreement. Both parties have also entered into a Registration Rights Agreement under which, the Company agreed to file a registration statement with the Securities and Exchange Commission with respect to the Shares. The ability to draw on the line is conditioned upon having an effective registration statement. In connection with obtaining the equity line, the Company issued Southridge a $50,000 promissory note (the “Southridge Note”) due May 31, 2013 to satisfy its fees owned to Southridge on the equity line. The Southridge Note is convertible into common stock at a 50% discount to the lowest closing bid price of the common stock for the five days prior to conversion.

v/r
Sterling