And it is extremely difficult to raise money being delisted and delinquent. Nit being able to rely on 144
Not true when you have such a company making, blockbuster, sure win lawsuit in hand. Let's not forget these two new products that will take in millions of dollars and gain distribution all throughout the whole state of Rhode Island.
"The majority of the money raised was private placement capital at $0.004" (plus some 3 year warrants tossed in, exercisable at $.01)
Pages F-26&27 of the most recent 10-Q describe the latest fund raising effort reported by the company. Rather than a plain vanilla private placement it's another one of those nifty convertible notes. Some of the details: Group 10 Holdings (we remember them, don't we?) gave TAUG $38,000 on or around November 7th. Taug issued them 8,000,000 shares as a fee to make the loan and is being charged 12% interest on the $45,000 face amount of the debenture. The maturity date doesn't appear in the filing, however a number of the terms are based on it (Increased interest/principal for non-payment, increased principal for pre-payment). At any time Group 10 can convert any unpaid principal, interest or fees "at the conversion price, (the “conversion shares”) which shall mean the lesser of (a) sixty percent (60%) multiplied by the lowest closing price during the thirty-five (35) trading days prior to the notice of conversion is given (which represents a discount rate of forty percent (40%)) or (b) one-half of a penny ($0.003.)" ("one-half of a penny ($0.003.)" = Special Group 10/Tauriga currency rates???)
There's a different and far more oppressive conversion rate if the market cap drops below $2M or the share price drops below $.002 on the day before the conversion notice is issued, but let's just look at the potential cost of the loan at the basic rate.
If Group 10 converted today: The lowest close in the last 35 days was $.00445. The conversion price would then be $.00267 and the principal would convert to 16,854,000...at today's close they would be worth $84,270. Of course those shares would be restricted and unavailable for sale for 6 months from the date of the note, assuming the other requirements of Rulee 144 are met.
So for ballpark purposes the cost of the $38,000 loan to TAUG (and the total return to Group 10 would be: $84,270 in value of converted shares $40,000 in value of commitment shares $975 in interest
So that $38,000 65 day loan would have cost TAUG approximately $125,000 in total cash and share value if converted today.
And based on the fact that this loan replaced another one just like it, I wouldn't be surprised if this one were to be be replaced quickly as well.
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