Good news, bad news.
biz.yahoo.com
Footmaxx Holding Inc. Announces The Extension Of The Maturity Date Of All Series I, Series II And Series III Debentures To March 31, 2002
That's the good news.
We believe that 2001 will be our break-out year from a operating profitability standpoint, and we are hopeful that by March, 2002
That sounds good, too.
Footmaxx and each of the holders convenants and agree to execute and deliver such Extension
Instruments as are necessary or desirable to further amend and restate the Trust Indenture in order to:
(a) Extend the Maturity Date to March 31, 2002;
(b) Convert into principal all accrued interest outstanding pursuant to the Series I Debentures, Series II Debentures and Series III Debentures as of March 31, 2001;
(c) Increase the interest rate applicable to each series of Debentures to 12% per annum;
(d) Decrease the Conversion Rate applicable to each series of Debentures to $0.15 per common shares; which will require CDNX approval;
(e) Provide that the Series II Debentures and Series III Debentures shall rank pari passu with respect to both the repayment of principal and interest and the security provided therefor and both Series shall rank in priority to the Series I Debentures;
The number of common shares issued to date number 35,766,224.
Fully diluted at December 31, 2000 which includes full conversion of Debenture I at $.60 per common share, Debenture II at $.50 and Debenture III at $.40 plus stock options totals 65,747,667.
Fully diluted at March 31, 2002 including the above consideration for this extension; the number of issued shares with full conversion will be 147,918,896.
Major share dilution. That doesn't sound so good.
Cush |
