Replies to post #37189 on Mexus Gold US (MXSG)

[gitreal]

My section in the I-box lays it all out. The next note becomes convertible a week from today, if my calculations are correct:

On November 21, 2019, the Company issued a Convertible Promissory Note (“Note”) to Crown Bridge Partners, LLC (“Holder”) in the original principal amount of $27,500 less transaction costs of $3,250 bearing a 12% annual interest rate and maturing November 21, 2020 for $24,250 in cash. Convertible May 19, 2020

On December 12, 2019, the Company issued a Convertible Promissory Note (“Note”) to Power Up Lending Group Ltd. (“Holder”) in the original principal amount of $57,500 less transaction costs of $2,500 bearing a 12% annual interest rate and maturing September 15, 2020 for $55,000 in cash. Convertible May 30, 2020

On December 19, 2019, the Company entered into a Securities Purchase Agreement with Auctus Fund, LLC, (“Holder”) relating to the issuance and sale of a Convertible Promissory Note (the “Note”) with an original principal amount of $112,750 less an original issue discount of $10,000 and transaction costs of $2,750 bearing a 12% annual interest rate and maturing October 19, 2020 for $100,000 in cash. Convertible June 16, 2020

The terms for the conversions will be worse and worse with each note. The Auctus note in particular is horrible: After 180 days after the issue date, the Note together with any unpaid accrued interest is convertible into shares of common stock of the Company at the Holder’s option at a variable conversion price calculated at 50% of the market price defined as the lowest trading price during the twenty-five trading day period ending on the latest trading day prior to the conversion date.


50% of the lowest trading price???? Wow, that is a killer! PT must have been absolutely desperate to agree to terms like that. And it's a big one too....$112K.

And how many more convertible notes did PT take out after the Dec. 19th note from Auctus? Who knows? Investors won't know until the 10-K is issued in July. Ignorance is bliss.