Each one in plain English, with the numbers worked through for a shareholder.
8 Mar 2013capital raising announcement▼ BadMajor
The company took two new short-term convertible loans. JMJ Financial agreed on January 31, 2013 to lend up to $360,000 (up to $400,000 including a 10% original issue discount), with $50,000 advanced February 13, 2013; it converts at the lesser of $0.11 or 60% of the lowest recent trading price. Asher Enterprises bought a $103,500 8% note due February 20, 2014, convertible at a discount to market. These terms can create many new shares if the stock falls (inference: further dilution risk).
On December 26, 2012 the company issued 500 Series B Preferred shares each to CEO Michael Carey and COO Ryan Hudson (1,000 total) for services. These shares carry 51% of all votes, so the two executives control about 64.7% of total votes, and common holders keep a minority of the vote. Common stock outstanding was 50,034,543 shares. The filing itself warns their interests may differ from other shareholders'.
6 June 2012capital raising announcement● NeutralMajor
On June 4, 2012 the company borrowed another $215,000 under the October 2011 facility (10% note due October 14, 2014, with 215,000 warrants at $1.00), and the investor agreed to raise the facility's total size from $1.5M to $1.59M. Separately, on June 1, 2012 one foreign investor converted $590,000 of the early-2011 senior notes into 1,180,000 shares at $0.50, which removes that debt but adds shares for existing holders' dilution.
18 Oct 2011capital raising announcement● NeutralMajor
On October 14, 2011 the company signed a new Note and Warrant Purchase Agreement with an investor for up to $1,500,000 in installments, with a $400,000 first installment received and 400,000 warrants issued. Notes convert at $0.50 and warrants are $1.00 for five years, and the company must register the underlying shares for resale within 180 days. This is a second financing facility separate from the December 2010 one; the filing does not say whether the investor is the same.
On June 30, 2011 the company received another $115,000 under the December 2010 note facility, issuing a 10% senior secured convertible note due December 31, 2013 (convertible at $0.50) and 115,000 warrants at $1.00 expiring in five years. This is a further draw following the $75,000 received ten days earlier, adding to the convertible debt.
On June 20, 2011 the company received a further $75,000 under its December 2010 note facility, issuing a 10% senior secured convertible note due December 31, 2013 (convertible at $0.50 per share) and 75,000 warrants at $1.00 expiring in five years. This is another draw on the existing facility, adding to the company's convertible debt.
The company drew a further $150,000 on its December 2010 note facility on January 20, 2011, issuing a senior secured convertible note due December 31, 2013 at 10% interest, plus 150,000 warrants at $1.00 per share expiring in five years. This adds to the debt behind the facility.
