Item 8.01 Other Events
On
The settled convertible notes contained a default provision providing that in the event that the Company were to become delinquent in its reporting obligations under the Securities Exchange Act of 1934 after the six month anniversary of the applicable note the noteholder would be entitled to convert the outstanding principal balances and accrued interest into shares of the Company's common stock at 65% the lowest closing bid price during the delinquency period ("Default Conversion Price").
The Company has determined that the language utilized in the aforementioned
provision may be interpreted as permitting the noteholder to convert the
outstanding principal balances and accrued interest at the Default Conversion
Price even in the event that such delinquency has been cured. Pursuant to such
interpretation the noteholders may have been able to convert the outstanding
balances over time into 855,584,615 shares of the Company's common stock having
an aggregate value of
2
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