Alliance Creative Group Inc (ACGX)

[RDG013]

That is only the Golden State Note. Per the 10K, there is a total of around $1.35M in debt that can be converted and the average conversion rate of all the debt is at a 30% discount of market. Keep in mind, that discount usually means average trading price over a 3-5 day period.

This is noted in the final paragraph of Point 8 which is on Page 9 of the filings. Also noted here is the fact that there have been no actual agreements put in place with the potential converters, so if/when they need money again, ACGX could very quickly revert back to conversion rates seen in the 2nd half of 2013.

Keep in mind, most of these debt holders could care less at what price they convert. In fact, in many cases, they are better converting for more shares at a lower price, which give them a better chance to increase the return on their conversions with a little pump. Seeing ACGX claims they had nothing to do with that Paid for Pump PR making the crazy claim of a worth of .05, it stands to reason that PR may very well have been paid for by a debt holder with shares to release into the market. Whoever paid for it, surely got their money's worth with that short term run.