GRASS VALLEY, CA--(Marketwired - May 13, 2016) - Simlatus Corporation (OTC PINK: SIML) announces today that it has reached an agreement with Direct Capital Group, Inc. to immediately extinguish $1.3M in convertible notes. The company will file an 8-K in reference to this transaction.
On May 12, 2016, Simlatus Corporation reached an agreement with Direct Capital Group, Inc. to extinguish $1.3M of the approximate $2,060,000 in convertible notes related to previous debts owed to them by the previous company, Grid Petroleum Corporation. The remaining notes of $750,000 will be amended in the next 15 days to include an interest rate of 8%, prepayment of 100% and conversion features of 30% discount to the average of the closing price 10 days previous to the conversion notice. Further, the conversions will be limited to once a month at 4.9% of the outstanding shares, and volume restrictions of 20% of the daily volume.
Gary Tilden, Chief Executive Officer, stated, "We have substantially reduced all of the debts, as promised. This action will allow for better market equality and reflect a stronger balance sheet moving forward. Simlatus is prepared to prepay the Direct Capital Group notes over the next 18 months. We are now focused on the delivery of the Fiber Group order, as well as other orders recently received through various distributors. We also plan to make an announcement soon of the new SyncPal product and debut as it relates to our revenue stream."
The company is currently working towards moving its facility to a larger complex in conjunction with the new Digital Media Center developed by the Economic Resource Council. This is a part of the strategy and new product development currently underway for the $120B augmented and virtual reality markets.
The company and its auditor are working on the 10-K filing for the period ending March 31, 2016, and plans to have it filed on time. The subsequent events will reflect revenues and debt reductions.
Safe Harbor for Forward-Looking Statements: This news release includes forward-looking statements. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. The Company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are and will be set forth in the company's periodic filings with the U.S. Securities and Exchange Commission.