Lincoln and Swartz will immediately convert their remaining convertible debentures of the Company, following which the Company will not have any debt on its balance sheet.
To facilitate the conversion of the debentures, agreements between the Company and Lincoln and Swartz which prohibit each of Lincoln and Swartz from owning more than 4.99% of the Company's Common Stock will be amended to allow them to own up to 9.99% of the Common Stock. With their holdings exceeding 5% they will need to make appropriate SEC filings upon future dispositions of the Company's stock
Most if not all of the increase in shares outstanding resulted from this maneuver...IMO.
