To Alvie and others: Yes, that is precisely what this deal means, they settled nearly $800,000 of debt for a certain number of shares. The number of shares will likely not be 35 million in the end, see the filing, where it says the number of shares IV is entitled to is:
"250,000 common shares plus that number of shares with an aggregate value equal to the debt amount plus ten percent and reasonable attorney fees, divided by 80% of the following: the volume weighted average price of the issuer’s common stock over that number of consecutive trading days following the date of receipt required for the aggregate trading volume to exceed $5 million, not to exceed the arithmetic average of the individual daily volume weighted average prices of any five trading days during such period."
Nevertheless, it's heavily weighted towards Ironside, and the number will likely be around 35 million in the end (give or take).
JB likely did not have much choice to proceed, however, as this fund acquired the debt and could likely have filed suit for judgment against BORK for the full amount. BORK not having that amount in cash to pay the debt, or dollars to litigate it in court, might have ended in a bankruptcy judgment in my opinion.
Having said all that, JB and ATL need to know this is not the way to settle a debt like this and I hope they will call someone skilled before any such future transactions like this. The person I have in mind is a person who is a long-time investor in BORK since the GPGI days and regular poster on this board.
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