Replies to post #115269 on DD Support Board and Research Team
12/01/16 3:58 PM
12/01/16 4:56 PM
Debt Settlement
On April 1, 2016, the Company entered into an agreement with Investor Relations Partners (“IRP’), to render certain investor relations and financial communications services to the Company. IRP agreed to perform investor relations, public relations, stock surveillance and other ancillary services as requested by the Company (the “Agreement”). For the requested services, the Company was to pay IRP a one-time payment of Two Hundred Fifty Thousand Dollar ($250,000) (the “Claim”) upon the signing of the Agreement.
On May 24, 2016, the Company and Phoenix Fund Management, LLC (“Phoenix Fund”) entered into a Claim Purchase Agreement with IRP to purchase the Claim held by IRP. Phoenix Fund executed a Settlement Agreement (the “Settlement Agreement”) whereas the Company and Phoenix Fund agreed to resolve, settle and compromise the Claim. In settlement of the Claim, the Company shall issue and deliver to Phoenix Fund shares of its common stock as requested by Phoenix Fund, periodically, at a fifty percent (50%) discount from the average closing price of the Company’s common stock for the three trading days prior to the date of issuance.
On June 13, 2016, Phoenix Fund elected to have the Company issue 1,041,348 free trading shares of the Company’s common stock in exchange for retirement of $72,895 of the initial Claim. As a result, the Company recorded a loss on debt settlement of $73,935 reflecting the difference in the discounted conversion price and the market price.
On May 24, 2016, the Company and Phoenix Fund Management, LLC (“Phoenix Fund”) entered into a Claim Purchase Agreement with these PR Resources to purchase the Claim held by them. Phoenix Fund executed a Settlement Agreement whereas the Company and Phoenix Fund agreed to resolve, settle and compromise the Claim. In settlement of the Claim, the Company shall issue and deliver to Phoenix Fund shares of its common stock as requested by Phoenix Fund, periodically, at a fifty percent (50%) discount from the average closing price of the Company’s common stock for the three trading days prior to the date of issuance.
During the three months ended September 30, 2016, Phoenix Fund elected to have the Company issue 18,828,088 free trading shares of the Company’s common stock in exchange for retirement of remaining balance of the initial Claim. As a result, the Company recorded a loss on debt settlement of $202,933 reflecting the difference in the discounted conversion price and the market price.
On October 5, 2016, the Company, Lynx Consulting and Phoenix Fund Management, LLC (“Phoenix Fund”) entered into an Assignment and Modification Agreement. Phoenix Fund purchased the debt claim held by Lynx Consulting from MyDx. In settlement of the Claim, the Company shall issue and deliver to Phoenix Fund shares of its common stock as requested by Phoenix Fund, periodically, at a fifty percent (50%) discount from the average closing price of the Company’s common stock for the 22 trading days prior to the date of issuance. Upon execution of the assignment, Lynx released MyDx, Inc. from all liabilities under the original note.
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