Nope. Two more Asher conversions set to hit the slate unless of course SMKY gets the real financing to pay off this toxic financing first.
The Company has entered into four convertible debt arrangements with an unrelated financier (“Financier”). The promissory notes carry interest at an 8% annual rate and are due nine months from the transaction date. The first note was in the principal amount of $42,500 and is due July 11, 2012. The second note was in the principal amount of $35,000 and is due September 15, 2012. The third note was in the principal amount of $37,500 and is due on November 4, 2012. The fourth note was in the principal amount of $32,500 and is due on February 4, 2013. All notes have a conversion option which allows the Financier to convert the principal and accrued interest into common shares based on the average of the lowest three closing prices of the Companies stock over the prior ten to fifteen days. That price is then discounted by 45% to arrive at the conversion price. The Company has the right to repurchase the notes during the first 180 days at a price which includes accrued interest plus the original principal amount multiplied by 150%.
The Company has the right to repurchase the notes during the first 180 days at a price which includes accrued interest plus the original principal amount multiplied by 150%.
Great deal, Asher financing eh? No wonder all the loan sharks of the days of old have moved into toxic financing. Its much more lucrative, and legal somehow. Asher would love to be paid back instead of shares, they get their 8% per annum plus 150% of the principal amount. No wonder SMKY would rather pay them back in shares.
For every 100K loaned, Asher would receive 150K plus interest accrued on the 100K in case of the company paying them back instead of issuing shares. LOL.
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