Replies to post #3902 on George Foreman Enterprises Inc.(fka GFME)

[YourPlanet]

If you care to read the details you will find that they are not in default ;-)

[levelnever]

Hey quant, we discussed this back in December, I'm going to post some of the old messages once I have a chance this weekend. Either way, thanks for bringing it up. I know some people new to DD'ing it may not be seeing the full picture and focusing simply on the last filing without doing more digging. Basically the Chairman of the Board, Seymour Holtzman & his entities are the holders of one set of notes. He owns 36% of the O/S, accumulating all the way up until last summer. The second notes holder is Jeremy Anderson, the CFO. If I remember correctly he has an ability to convert to some shares if PPS makes it past 2.50. Having followed since last May, this was one of the outstanding issues still out there. I for one saw the December filing as showing they were attempting to work through this issue. Certainly, it's something I will be watching for more on, especially once new filings come out, but would be hard to think both Holtzman & Andersen who have a future stake in the success of this stock, not working through it. Which is why I at least do not consider it a big stumbling block. Will try and find those posts or if someone else wants to find them and post, feel free.

[byrd36]

what he meant was if you read the last paragraph, the default was waived. To add to that the note holder is the CFO, Jeremy Anderson. The heads of this operation has REAL skin in the game and much to gain from what we think is the R/M. This is only more confirmation of the pending R/M in my eyes.

[TEXASOIL]

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.