Will there be an impact on the share price around August 26th ?
O"n February 26, 2020, the Company and an investor (the “Investor”) agreed to exchange $330,000 of notes payable into a 12% convertible note with a face value of $330,000. This note is convertible into common stock at a conversion price equal to a 44% discount to the lowest trading price of the common stock for the 20 prior trading days including the day upon which a notice of conversion is received. The embedded conversion feature included in this note resulted in interest expense of $365,757 with the offset to derivative liabilities. On March 3, 2020, a third-party investor (the “Purchaser”), pursuant to a Debt Purchase Agreement, purchased this note. This note, as amended, is convertible into common stock at a conversion price equal to a 70% discount to the lowest closing prices of the common stock for thirty prior trading days including the day upon which a notice of conversion is received. For the six months ended June 30, 2020, the Company recorded additional interest expense of $468,750 due to defaults of this note and the amount was added to the principal balance owed the Purchaser. The embedded conversion feature pursuant to this agreement resulted in interest expense of $1,321,618 with the offset recorded to derivative liabilities. As of June 30, 2020, the outstanding principal balance of assigned note was $798,750. This note was fully converted as of August 13, 2020."