Replies to post #32935 on Bemax Inc (BMXC)

[I-Glow]

The problem is that the CEO has been using more toxic debt to pay off the notes.

From the most recent 10-K under Subsequent Events we find:

"Subsequent to May 31, 2017, the Company paid off its December 28, 2016 note with Crown Bridge Partners in full for $71,500. The payment includes principle of $46,000, accrued interest and prepayment penalty."

On 3/20/2017 BMXC borrowed $114,000 from Crown Bridge. BMXC paid a $14,000 discount for the loan - meaning they received $100,000. Plus, this loan has some of the toxic terms I have seen.

"The conversion rate will be at a discount of 43% applied to the lowest trading price for ten days prior to the actual date of conversion."

If we use the price of 0.004 for the conversion - we have the following (I won't include interest).

The $114,000 converts into 66,279,070 shares.

For a 6 month loan Crown would receive:

$14,000 + (66,279,070 x 0.004 = $265,116) = $279,116

Companies can't survive using toxic financing. Especially using toxic financing to repay past toxic debt.

IG

[allenc]

None of them are favorable. I will load, load and load if we see levels that low in the near future. JMO