Replies to post #180 on Sub-Urban Brands, Inc. (SUUB)

[Aston Martin]

Interesting comment and reply by the Editior of www.otcjournal.com regarding the latest filing of SUUB:

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Comment by Michael — 10/2/2006 @ 10:16 am:
Can you give an interpretation of this part of the latest 8-k?
“….From August 28, 2006 to September 18, 2006, to obtain funding for working capital, Sub-Urban Brands, Inc. (the “Company”) entered into securities purchase agreements (the “Agreement”) with accredited investors (the “Investors”) for the sale of $300,000 in the principal amount of 10% Subordinated Promissory Note (the “Note”) and 373,500 common stock purchase warrants (“Warrants”) exercisable at $0.40…..”
Thanks.

Editor: Sure- they are borrowing money at 10% and throwing in a warrant that converts at $.40- which really acts like a financing at $.40 when the warrants are converted. Apparently, they need money, which is no surprise. This seems like a pretty good financing to me as long as their is no toxic feature on the debt. There wasn’t any disclosed in the 8k, so it’s probably just straight debt.
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wrongjoe, if the editor of OTCJournal is right, I don't believe SUUB will dilute the I&O. I assume they are looking for other ways to finance aquisitions etc. Taking into account that insider purchase 35 millimon shares of those 49 million I&O this would make sense. The insider would be bigger losers than market buyers if they dilute the stock. Just IMHO