Richard: One of the more interesting portions of the debenture agreement is what happens should a judgment be entered against Oilex in any one of its many pending lawsuits. Among the definitions of an Event of Default is included the following:
"(g) Any money judgment, writ or warrant of attachment, or similar process, in excess of One hundred Thousand ($100,000) Dollars in the aggregate shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen (15) days . . ."
In other words, my lay reading of this provision could be interpreted to mean that a judgment against the Company could potentially give the debenture holder the right to demand full payment. I seriously doubt the company could raise the full sum of cash. And, the debenture balance if paid off if company stock would require millions and millions of shares of common stock, perhaps as many as 20,000,000 shares depending upon balance and share price.
That is one of the reasons why I have been saying all along that these pending lawsuits are very, very material to Oilex and should have been fully disclosed to investors.
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