Replies to post #43773 on Hangover Joe's Holding Corp. (fka HJOE)

[janice shell]

did Curt and Seth Kramer start KBM under Seth's name just to get around the SEC restrictions placed on him and companies doing business with Curt Kramer by FINRA?

That's a reasonable supposition. Though the underlying action was brought by the SEC.

https://www.sec.gov/News/PressRelease/Detail/PressRelease/1370540410863

There's also a more recent action involving SPNG, though the case goes back to 2008-2009:

https://www.sec.gov/litigation/admin/2016/33-10239.pdf

[I-Glow]

Why is that the HJOE management is never held accountable by a few shareholders for using the toxic lenders - HJOE has used many in the past - but oddly it is always about the toxic lenders and not HJOE.

JMJ Financial

JSJ Investments Inc.

LG Capital Funding, LLC

Adar Bays, LLC

KBM Worldwide, Inc.

Auctus Private Equity Fund, LLC

Eastmore Capital, LLC

GEL Properties

Union Capital, LLC

Black Mountain Equities, Inc.

Tangiers Investment Group, LLC

Magna Capital

Asher

TCA

If you look at TRTC you will see that they used Magna responsibly and the terms of the loan weren't catastrophic.

Here are the terms of one KBM loan:

On May 14, 2014, the Company entered into a Securities Purchase Agreement with KBM Worldwide, Inc. ("KBM"), for the sale of an 8% convertible note in the principal amount of $29,000 (the "KBM Note 1"). This Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on February 13, 2015. The Note is convertible into common stock, at KBM's option, at a 45% discount to the average of the three lowest closing bid prices of the Company's common stock during the 10 trading day period prior to conversion.

That is toxic financing - and HJOE obviously agreed to the terms.

IG