quant in school. Welcome to the board. Below was taken from the 10Q filed November,19,2008. About half way through the filing Section 13. Each unit is equal to 1 share of stock at a conversion rate of $2.50. As one can see Holtzman and his Enities along with CFO Jeremy Anderson are who the majority of the debt appears to be owed. So you can see why what appears at first glance to be a negative is another HUGE positive incentive for the powers in charge to R/M this company and get paid. Also you will notice that they have warrant rights to buy 1 share of stock exercisable at $3 per share. So if GFME hits $20 a share they can exercise their right to buy shares at $3. I believe that is how a warrant works. Again even more incentive.
13. CONVERTIBLE NOTES PAYABLE
On March 7, 2008, the Company sold 8% Convertible Promissory Notes (the “Notes”) in the aggregate principal amount of $800,000. The Notes are convertible into units of the Company at a conversion price of $2.50 per unit, subject to adjustment. Each unit consists of one share of the Company’s common stock, par value $0.01 and one common stock purchase warrant, exercisable at a price of $3.00 per share, subject to adjustment. The buyers of the Notes included two entities that are controlled by Seymour Holtzman. Mr. Holtzman is a director, chief executive officer and co-chairman of the board of directors of the Company. The buyers also included Jeremy Anderson, the chief financial officer of the Company.
Effective March 31, 2008, the Company sold newly issued 8% Convertible Notes in the aggregate principal amount of $200,000. The Notes are also convertible into units of the Company at a conversion price of $2.50 per unit, subject to adjustment. Also, each unit consists of one share of the Company’s common stock, par value $0.01 and one common stock purchase warrant, exercisable at a price of $3.00 per share, subject to adjustment.