What's up? Subsequent Event
In March 2012, the Company raised $550,000 by way of a discounted loan resulting in the amount of $687,500 being added to a loan that was originally advanced in April 2009. Interest on the full amount of the loan will accrue at a rate of 15% until March 31, 2013 and thereafter, interest will be payable on a quarterly basis. The new loan amount and the original principal amount now mature August 31, 2014.
As part of this agreement, the Company also agreed to complete a share consolidation of its common shares prior to May 31, 2012, subject to all applicable regulatory approvals, on a minimum ratio of 10 pre-consolidation common shares for 1 post-consolidation common share, and to exercise its option to repurchase the assets it previously sold pursuant to the financing arrangement prior to May 31, 2012 .
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March 14th, 2012. Suddenly, there is a wish to do the consolidation and do it quickly as terms to even getting the $550,000. Some may fear that $550,000 is the last money from insiders. A consolidation, in theory, should help prepare the company to raise money via public equity offering (mentioned in a previous news release).
Maybe for the insiders who put up the $550,000, it was time to draw the line and call it quits from now on. If this is the interpretation, then some shareholders became scared and sold off. No more money from insiders, that dreadful rollback, and the uncertainty about raising money from the public via any post-consolidation equity offering.
I don't know if Futura will list on OTCBB. May seem like the right thing to do, as most of the revenue the company will earn, will be from the US. Maybe financing will be easier from the US. Some posters on this forum last year had made mention of this possibility. The rollback was to be done first however.