Replies to post #37505 on Mexus Gold US (MXSG)

[Belgie24]

Based on the history of Paul's dealings with toxic notes, i am less than enthusiastic that the June loan will be any different than the rest, and will convert in the range of 150-200 million shares.

I base this partially on the fact that Mexus spends about $300,000 per quarter, and expanding the mine's ops may add to that figure. So gold sales may cover most of that, but they won't cover the toxic loans.

We're going over 2 billion issued, in short order. Then we'll hope that production is firing on all cylinders, to survive the coming reverse split.

It is what it is.

[gitreal]

I hadn't ran the numbers and assumed the $142,000 included all the notes that were on the last 10-k.

Nope, not even close. That $142K note was convertible in March, but PT somehow got it pushed off until April. The second note (another $82.5K) in March also got pushed off until April. I assume both of these got converted, plus any penalties for being pushed off a month.

So, there is now one more note that can be converted as of last week, a paltry $27.5K. That could be what started converting today. That shouldn't hurt too much. And the next one, $57.5K is convertible at the end of this week. That will hurt a bit more.

And after these two are done....the MOAN (Mother of all Notes) is convertible in the middle of June, which is now three weeks away. The value of that one is $112K but the terms on that one are what make it so bad.....they are horrendous, way worse than previous notes! Someone predicted 150-200 million shares coming from that one alone. I think it will be double that.

Here's the summary for you, in case you don't see it in the I-box:

On September 16, 2019, the Company issued a Convertible Promissory Note (“Note”) to JSJ Investments Inc. (“Holder”) in the original principal amount of $142,000 less debt discount of $17,000 bearing a 6% annual interest rate and maturing September 16, 2020 for $125,000 in cash. Convertible March 14, 2020

On October 3, 2019, the Company issued a Convertible Promissory Note (“Note”) to Power Up Lending Group Ltd. (“Holder”) in the original principal amount of $82,500 less transaction costs of $2,500 bearing a 12% annual interest rate and maturing August 15, 2020 for $80,000 in cash. Convertible March 21, 2020

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