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TOPIC: LUXD - 10Q filing with info on negotiations of reverse merger

LUXD - 10Q filing with info on negotiations of reverse merger 6 years 4 months ago #1567

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LUXD - interesting SEC 10Q filing that includes three statements describing the company they are in negotiations with for a possible reverse merger. The statements include adjectives to describe the new company, making it sound like they are pumping their stock right in the SEC filings … especially since the company has a convertible note payable outstanding that is convertible into stock at 61% of the market price.

Note also that they have a current business and have not declared themselves a shell.

The three statements:
1. As of July 8, 2011 the Company is in active negations with a party to do a reverse merger which will result in a change of control of the Company with a new, different and considerably larger business being vended into the Company, which shall result in substantial dilution to shareholders.
2. The Company is currently in negotiation to do a reverse merger with a larger Company with far greater liquidity then Lux.
3. The Company is engaged in negotiations to do a reverse merger with a larger Company operating in a different field. If successfully completed the transaction would create greater liquidity for the new Company.

NOTE 5: CONVERTIBLE NOTE PAYABLE
The Company issued a convertible note for $70,000 to a related party on May 14, 2010. The note bears 8% interest and matured on February 14, 2011. Payment has not been demanded and we have verbally agreed to extend the conversion period. The note is convertible into shares of common stock of the Company beginning 120 days after the issuance and up until the note comes due (or later if extended). The note is convertible into shares of common stock at a rate of 61% of the market price on the date of conversion. The investor will be limited to convert no more than 4.99% of the issued and outstanding common stock at time of conversion at any one time. Interest expense of $1,688 was recorded on this loan during the year ended August 31, 2010.

www.sec.gov/Archives/edgar/data/1442376/...11001043/lux_10q.htm

I DO NOT OWN SHARES IN LUXD.
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