Magna didn't have to wait 6 months to convert. It's a replacement note for Gel and Union who also didn't have to wait 6 months before they converted. Gel and Union each converted 2 $57,500 payments before the at the time 500 million authorized shares ran out which stopped their conversions. That's why Magna took their place now.
The original $513,000 Settlement Agreement with TCA Global Master Credit Fund, L.P., includes GEL Properties LLC and Union Capital LLC, who each entered into Assignment and Assumption Agreements with TCA in the amount of $230,000 payable in four equal monthly installments and the Company agreed to pay TCA $53,000 sixty days after the final installments are paid under the Assignment and Assumption Agreements.
The Company simultaneously entered into Replacement Notes from TCA with GEL Properties LLC and Union Capital for the sale of 8% convertible redeemable notes in the principal amount of $57,500 each for their first installments.
All interest and principal under these notes was to be repaid on July 12, 2015 and are convertible into common stock, at the note holder's option, at a 45% discount to the average of the three lowest closing prices of the common stock during the 20 trading day period prior to conversion. Both Union Capital and GEL Properties paid their first two installments; under the most recent arrangement Magna Equities has agreed to pay the remaining amounts owed in $25,000 biweekly installments subject to certain conditions.
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