Replies to post #20226 on Green Parts International Inc (fka GNPT)

[butoft]

It might have been required to obtain the loan. He could eventually issue preferred shares that have a restriction on when they can convert. All that matters right now is Issued Shares, OS and float.

[Vector93]

I can't say for sure why there was an A/S increase, but I do know it would have nothing to do with the SBA loan. The A/S increase was effective in June 2015, per the filing, and the SBA loan didn't come through till a couple weeks ago.

Increasing the A/S could have been the backup plan to not getting an SBA loan. At a par value of .001, it would have allowed for almost $3 million of dilution to raise funds.

Now, why wouldn't the government led them $5,000,000? If they're a legitimate small business, the government is all about supporting and growing small businesses.

As far as what it was used for, it's right in the 8K. $3.9 million paid off and restructured convertibles, and the rest will be cash on hand for day to day operations like paying employee wages, or purchasing junk cars that can be stripped for parts and sold as pieces for more than they bought the car. That's how this business operates.