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PURE Bioscience, Inc. Message Board

  • seattle49 seattle49 Jan 31, 2013 6:15 PM Flag

    Rearranging the deck chairs

    A snip from today's 8K:

    " ... Dear Mike:

    This letter agreement (the “Agreement”) sets forth the agreement between Morrison & Foerster LLP (“Morrison”) and Pure Bioscience, Inc., a Delaware corporation (the “Company”) regarding amounts due and payable to Morrison for legal services rendered.

    We have reviewed the letter dated September 11, 2012 from The Nasdaq Stock Market regarding the conditions to the Company’s continued listing on the Nasdaq Capital Market, and we understand that

    ******* a reduction in the amounts payable to Morrison is a necessary part of the Company’s ability to satisfy the minimum forecasted stockholders’ equity requirement. *******

    ***** emphasis added *****

    For the avoidance of doubt, the Company and Morrison acknowledge and agree that the issuance of the Notes and Warrant shall be in full satisfaction of the obligations under the invoices listed on Schedule 1 . Morrison hereby releases any claim it has or may have to payment of such obligations. ... "

    So with a stroke of a pen this amount of Accounts Payable is temporarily remedied with an accounting entry ....... and supposedly allows the Company to satisfy NASDAQ's minimum stockholder equity requirement.

    Shell game comes to mind.

 
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