16 Sept 2011capital raising announcement▼ BadMajor
On September 9, 2011 the company signed a $96,499 demand note (8% interest) to CEO Arthur Bertagnolli for amounts he had lent it, and a 90-day management services deal with ASL Energy Corp. It owes ASL a $100,000 signing bonus, put into a $105,000 demand note (with $5,000 of expenses) that is convertible at $0.002 per share and secured by a first-priority claim on all company assets. ASL can also earn a further $100,000 bonus on a restructuring, $0.20 per $1.00 of liabilities it cuts, and 1% of fully diluted shares after a restructuring. The board also approved 100,000,000 restricted shares for Bertagnolli (only 5,000,000 issued for now) and waived conflict-of-interest claims over his outside dealings, including with ASL. For shareholders, the conversion price and share grants point to heavy dilution (inference), and lenders now hold a claim on all assets.