Item 8.01 Other Events.
On December 12, 2014, December 14, 2014 and January 15, 2015, the Company issued three Convertible Promissory Notes. The Company received on the referenced dates above $50,000, $5,000 and $50,000 respectively in the form of bona-fide cash transfers from each of the three non-affiliated parties (the Holder(s) or Seller(s)).
On February 17, 2017, River North Equity LLC. (the Purchaser), an existing note holder and creditor of the Company, having previously individually negotiated terms with the Sellers, purchased the three Notes through three separate Promissory Note Purchase agreements (the Agreement(s)).
Each of the three Sellers individually elected to accept consideration for the sale of their note amounts in the form of a portion of a note held by the Purchaser, dated January 9, 2015, having a principle face value of $111,111.00, and funded by bona-fide cash, in a separate un-associated issuer.
Each Seller conveyed all principle, accrued interest and penalty amounts of their note pursuant to the terms of their Agreement with the Purchaser. The purchaser similarly conveyed all proportionate principle, accrued interest and any other accruals to each Seller as the accepted consideration. The Company reviewed the agreement and provided consent to each Agreement.