Replies to post #134211 on DD Support Board and Research Team

[Zorax]

1man, forgive my ignorance, but this isn't the Kramer from cnbc is it?

[Arthur]

Kramer seems to have changed the usual anti-distribution clause in his shylock contracts.

Now, if there is a distribution offered, it must be offered to him first and foremost.

(c) Adjustment Due to Distribution . If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.

So, if VTNL was to offer a buy-back at $0.01 a share, Kramer could convert his $45,000 Promissory Note at 42% off the lowest trading price, say $0.0005 a share, and then resell those shares to VTNL at $0.01,
so an initial $45,000 loan would cost VTNL $900,000 to "buy back". That would be an insane amount of profit for Kramer.

[Newtogame]

Please forgive me for not asking if I could borrow this!