1 June 2015capital raising announcement▼ Bad
On May 26, 2015 the company issued a convertible note with a $285,000 face value to an accredited investor for $200,000, maturing in six months with no interest unless in default. After a default, it converts at a 20% discount to the average of the three lowest closing bids in the prior 20 trading days (up to 15% more discount in certain defaults). Defaults include late SEC filings or loss of OTCQB quotation, and then the note carries 22% interest. The terms are unusually costly relative to the cash received ($85,000 above the purchase price); that comparison is an inference from the stated figures.