Replies to post #31722 on International Star Inc (ILST)

[Werbe]

Original note would hold all that info, which we dont have access to. For sure they arent making it up as they go, as that would be proven easily by TA records. Just looking @ the little info they have given it shows anti-dilution protection on the original note, and also full ratchet protection on the warrants. That means whatever the lowest price is anywhere, they get to convert @ that rate. When in default, it adds another penalty percentage on top, which they for sure have in the note. Since ILST defaulted on the 12 month maturity date, Geller has started to add penalties to the balance which also must be hit with interest. All assets of the company are backed to this monster note, so he has them in a visegrip.

Below is from 2022 annual, when note was first signed up.

(1) On August 10, 2022, the Company issued a Senior Secured Convertible Promissory Note to Leonite Fund I, LP, in the principal amount of up to $625,000. The note was issued with an original issue discount of $75,000, for gross proceeds of up to $550,000, to be advanced in one or more tranches at the discretion of the lender, with the original issue discount applied on a pro rata basis based on the percentage of the purchase price advanced. As of the final day of the reporting period, the Company received three tranches advanced under the Note, (less the sum of $21,294 to cover lender’s expenses), for combined total proceeds of $425,000, and the principal amount outstanding was $482,955. The loan bears interest at 12% per annum and each tranche matures 12 months following the advance date. All payments due under the Note are payable at maturity. The Note is convertible into common shares at the option of the holder at a fixed price of $0.005 per share. The Note has both conversion price protection and anti-dilution protection provisions. The Note is secured by all of the assets of the Company.

As additional consideration under the terms of this Senior Secured Convertible Promissory Note, the Company issued warrants to Leonite which are exercisable for 62,500,000 Common Shares of the Company. These warrants are exercisable for 60 Months, contain full-ratchet anti-dilution protection provisions, and have an exercise price of $0.005.