On March 9, 2010, CB Cayman entered into a Note Purchase Agreement and a non-binding Letter of Intent, or the LOI with Sinotop HK. As discussed in detail elsewhere in this prospectus, through a series of contractual arrangements Sinotop HK controls Sinotop Beijing. Sinotop Beijing is, in turn, a party to a joint venture with two other PRC companies to provide integrated value-added service solutions for the delivery of PPV, VOD and enhanced premium content for cable providers.
Pursuant to the Note Purchase Agreement, on March 9, 2010, CB Cayman acquired a Convertible Promissory Note from Sinotop HK in consideration of CB Cayman’s US$580,000 loan to Sinotop HK.
On March 9, 2010, a significant beneficial owner of the Company’s securities, Oliveira Capital LLC, advanced $600,000 to CB Cayman in order to make the loan to Sinotop HK as described above.
On June 24, 2010, the Company repaid $580,000 of the $600,000 loan by assigning the Convertible Promissory Note from Sinotop HK in the amount or $580,000 to Oliveira Capital.
On July 30, 2010, Oliveira Capital LLC agreed to (i) cancel the remaining $20,000 of the March 9, 2010 loan and (ii) assign the $580,000 note of Sinotop HK to the Company, in exchange for (x) 1,200,000 shares of Series B Preferred Stock of the Company and (y) warrants to purchase of 36,000,000 shares of the Company’s common stock. See Note 13 “Private Financings, July 2010” under Notes to Consolidated Financial Statements under Item 8.
CB Cayman is Dr Priscilla Lu and it STILL is a Signifigcant holder of Convertible stock Warrants of YOU company.. You can't LIE your way outta this..