Mibella Message Board - Msg: 28519334

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Biotech / Medical : Mibella

PYCT 0.000001000

-95.0%

Jun 4 9:30 AM EST

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From: mortalmyth	11/3/2012 12:48:49 PM
	of 39

Latest on Product License Agreement ... The technology license agreement expired in July 2012, per the Paychest financials. No recent word has been provided on whether the company was indeed able to get it renewed, and whether they were successful in negotiating a deferral of the conversion of the notes payable. Reference from page 8 of 2011 Annual Report: "The Flushaway name and technology is licensed to the Company under a five (5) year Agreement that expires in July 2012. We have received confirmation from the licensor of their intent to renew the Agreement for a further five years and the Company is negotiating the deferral of the conversion of the note payable. Under the terms of the Agreement the Company is to pay a royalty of 5% of the product cost, and a note payable of $5,000,000. The Company has trademarked and owns Mibella, a new brand name for the product." If they were successful, and Paychest issued a $5 million note in July for the renewal, this should be reflected in the impending 3Q2012 report. Although I don't know if the on-going legal DTC "Chill" will justify a formal delay in the report date release. Now consider if the note is set at $0.0001 or less for the common share conversion rate, like so many other recent insider financed deals. If this is the case, then it would result in a significant amount of additional shares (in the tens of billions) being issued and added to both the O/S and A/S. With such a large issuance it's imperative the company is successful in extending the conversion date beyond next year. The share dilution potential sounds quite ominous, but I guess it's the cost of doing business without having been awarded Mibella process and product patents in Paychest's name. On a more positive note, at least if they renewed the technology license agreement it negates the likelihood of future contractual or legal issues. Looking forward to the next issued PR from Paychest. Good day to all.

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