Replies to post #5787 on Dr Foods Inc. (DRFS)

[xZx]

today was supposed to be the "dilution is over" party. one good slap and we're done, but as you said, the t-trade at the close was hefty, so there's obviously still conversions happening.

contracts are contracts. it makes no sense to me that note holders can convert whenever they feel like it.

why have an established maturity date, otherwise?

JDoggs_Money Monday, 03/28/16 09:23:14 AM
Re: xZx post# 5665
Post # of 5787

Your calcs are wrong ;)

$95,529 on 12/31
-$15,054 on 1/29
-$12,738 on 2/10
-$10,422 on 2/22
-$9,843 on 3/1
-$9,399 on 3/4
-$9,399 on 3/8
-$14,053 on 3/16
-$12,724 on 3/23
= $1,897 left on note...not $6k+

One decent slap may stop dilution for some time! $AWGI

[MADDSTACKER]

Looks like once a month big note hits for a little ..

[xZx]

yes, as of EOY 2015 the principal on the $900K note is $698,000, which means the current principal is lower, by whatever Q1 dilution we've had thus far.

however, w/r/t River North refinancing it, i'm not sure where we're at with this note.

Section 1 of the Note is hereby revised and restated in its entirety as follows:


1. Maturity Date. The Maturity Date is eighteen (18) months from the Effective Date of each payment of Consideration (the “Maturity Date”) and is the date upon which the Principal Sum of this Note and unpaid interest and fees (the “Note Amount”) shall be due and payable. The Maturity Date is hereby extended, and the Note Amount is payable upon demand by the Lender, but in no event later than sixty (60) months from the Effective Date (the ”Extended Maturity Date”). The Lender shall provide the Borrower with ten (10) days written notice to make a demand for payment (the “Demand Payment Date”), and the Demand Payment Date shall be considered to be the Extended Maturity Date.


Section 6 of the Note is hereby revised and restated in its entirety as follows:


6. Payment. The Borrower may not prepay this Note prior to the Maturity Date or the Extended Maturity Date. Within six (6) days prior to the Maturity Date or Extended Maturity Date, the Borrower shall provide the Lender with a written notice to pay the Note Amount on the Maturity Date or Extended Maturity Date. Within three (3) days of receiving written notice, the Lender shall elect to either (a) accept payment of the Note Amount or (b) convert any part of the Note Amount into shares of Common Stock. If the Lender elects to convert part of the Note Amount into shares of Common Stock, then the Borrower shall pay the remaining balance of the Note Amount by the Maturity Date or Extended Maturity Date.” The Borrower may not prepay this Note prior to the Maturity Date or the Extended Maturity Date.”

seems to me the lender could elect to convert all of it, or part of it, and whatever portion they elect to take in the form of cash could be supplied by the River North funding, but it's the lender's option.

is this how you see it?