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Re: None

Tuesday, 03/25/2014 4:06:02 PM

Tuesday, March 25, 2014 4:06:02 PM

Post# of 106837
Death spiral, toxic financing appears to be continuing- right on into 2014, right up until just recently. I'm just doing basic searches to pick out highlight, key issues I look for in every report.

And man- the terms on these deals are BRUTAL IMHO, just for a pittance of cash. BRUTAL. Look at the share discount they get, the interest rate and then the early pay-off penalty of like 150% of face value. WOW. BRUTAL terms- worse than in the past. 45% discount to market, 8% interest and now a payoff penalty (don't remember pay-off penalties in the past, maybe something new, more brutal from old Asher and the boys?). Wow, all for $30K lousy bucks or so at a time. Man- that is like worse than loan shark money terms IMO.


Just did a search on "Asher" and got to the financing area of the report: From page F-41

Subsequent financing

On January 14, 2014, the Company entered into a Securities Purchase Agreement with Asher Enterprises, Inc. (“Asher”), for the sale of an 8% convertible note in the principal amount of $32,500 (the “Note”).

The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on October 16, 2014. The Note is convertible into common stock, at Asher’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.

On February 10, 2014, the Company entered into a Securities Purchase Agreement with Asher Enterprises, Inc. (“Asher”), for the sale of an 8% convertible note in the principal amount of $32,500 (the “Note”).

The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on November 12, 2014. The Note is convertible into common stock, at Asher’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.

On February 19, 2014, the Company entered into a Securities Purchase Agreement with Daniel James Management, Inc., for the sale of an 8% convertible note in the principal amount of $35,000 (the “Note”).

The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on February 18, 2015. The Note is convertible into common stock, at Asher’s option, at a 47% discount to the lowest daily closing bid price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal at 150%, interest and any other amounts.