Replies to post #177827 on Eternal Image Inc (fka ETNLQ)

[lawrenzo]

hope EI gets better terms on the LOC than they have negotiated in the past....

· 1,263,158 shares to one(1) lender as an equity incentive to provide a July 2009 $34,900 loan to the Company. The shares were valued by the Company at $12,000.

· 4,529,412 shares to the same lender as an equity incentive to extend the above referenced July 2009 $34,900 loan. The shares were valued by the Company at $24,912.

source: pg 17 of 3rd quarter 10Q

over $36k in 2 months to secure and extend a $35k loan...oh my....and as far as shareholders know, the loan is still outstanding....12% Secured full recourse promissory note payable to Highwater Capital secured by 10,000,000 shares in Eternal
Image, Inc. Note has been extended through December 31, 2009.


EI did tell the shareholders in a shareholder bulletin the following...

"Please note, our O/S count since the previous 10Q has increased by approximately 20mm shares. All of these were Restricted Shares, and the vast majority were issued for fees related to raising capital and a few last minute details that needed to be addressed from last year. We feel Eternal Image is now ready to move forward." 10/23/09

with this kind of financial management demonstrated by EI it is no wonder why posters and shareholders have such doubts but i am sure there is a spin that can be put on this...

[Basser1]

"Why are they having to borrow $400,000 through Emerald to get this LOC?"

Where did you come up with this number? In the 8K the number is $200,000 so I was just wondering how it managed to get multiplied by 2.

ITEM 2.03 - Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registered.

On December 1, 2009, Eternal Image, Inc. (the “Company”) issued a fifteen (15) day promissory note in the amount of $200,000 in connection with a loan of the same amount it received from Emerald Asset Advisors (“Emerald”) of 425 Broad Hollow, Melville, NY 11747. Emerald is a shareholder of the Company. The proceeds of the loan are being used to assist the Company in meeting the lender requirements of a line of credit it is presently negotiating with a third party lender. The primary provisions of the Emerald promissory note are:

Date:

December 1, 2009

Principal:

$200,000.00

Term:

15 days

Interest Rate:

8% annually

Lender:

Emerald Asset Advisors

Borrower:

Eternal Image, Inc.

Security:

None

Additional Consideration:

None




A copy of the executed promissory note is attached hereto as exhibit 10.1 and incorporated by reference.

Basser