Replies to post #4900 on Service Team Inc (SVTE)

[Axel]

Qs for OTC stocks often need explanation. Usually this explanation is not available. But Bob delivered very fast. Without explanation the report looked bad but after listening to Bob it made perfect sense

That's why I bought when others dumped

Basically I expect net profit north of 100k resulting in a total of around 500k for the year.
Using a PE of 10 for a fast growing small cap puts us at 5m market cap.

It's clear that multi pennies is the short term goal for SVTE.

[learningthetruth]

IMPORTANT: It's the lowest CLOSING price, so the conversion ratio will be the same as the $14k note they converted on Monday.

"convertible into common stock at 50% of the closing market price of the lowest 3 trading days during the previous 25 trading days prior to conversion"

Lowest close SVTE has had in the last 25 days is .0068

You are correct though...roughly another 5 million shares and DONE!

BKRT(US Affiliate) is almost done now...so 1 note left and they may not convert it right away either......the only note remaining matured July 31, 2015.

Remember, they are pretty friendly sellers as you can see, nothing like the other toxic boys....

From yesterday's 10k:


On July 31, 2014, the Company issued a convertible note to Hallmark Venture Group inc. (a related party) for $18,003 of cash consideration. On September 31, 2014, Hallmark Venture Group Inc. sold the note to U S Affiliated Inc. (an unrelated third party). The note bears interest at 6%, matures on July 31, 2015, and is convertible into common stock at 50% of the closing market price of the lowest 3 trading days during the previous 25 trading days prior to conversion. The Company recorded a debt discount equal to $18,003 due to this conversion feature. The note was amended during July 2015 to mature on February 29, 2016. The note had accrued interest of $1, 709 and $1,170 as of February 29, 2016 and August 31, 2015, respectively. The Company evaluated the convertible note and determined that the shares issuable pursuant to the conversion option were determinate due to the conversion price floor and, as such, does not constitute a derivative liability as the Company has sufficient authorized shares and a conversion floor of $0.0005. In the event that the authorized shares were not sufficient, the Company has obtained authorization from a majority of shareholders such that the appropriate number of shares will be available or issuable for settlement to occur. The debt discount had a balance at February 29, 2016 and August 31, 2015was $0 and $0, respectively.

[2times2]

Could you please sticky #4913
tx
T2T2

[Kallie]

This is what I would question the company sold 50 million shares (averaging the price at .007)and there is still debt its not gone. They also indicate they may sell more and then he puts in the filing O/S is 37 million. Not very creditable at all IMO. This does not include the shares sold for the convertible debt either. I was under the impression huge revenues and no debt which is far from the truth

Liquidity and Capital Resources

As of February 29, 2016, we had assets of $ 256 , 303 including current assets of $ 184 , 865 . We have accounts payable of $197,972, convertible notes payable of $69,463, accrued expenses of $101,757. Hallmark Venture Group, Inc. is prepared to advance us additional funds as needed. Accrued expenses are for work performed by employees during the organizational and operational stages of the Company. There is no firm date for which these are to be paid. It is to be repaid when we have funds available. Since inception we have also raised $354,382 from the sale of our common stock. We believe our ability to achieve commercial success and continued growth will be dependent upon our continued access to capital either through additional sale of our equity or cash generated from operations. We will seek to obtain additional working capital through the sale of our securities. We will attempt to obtain additional capital through bank lines of credit; however, we have no agreements or understandings with third parties at this time.