|Note 7 - COMMON STOCK AND WARRANTS
During 2005, the authorized capital stock of
the Company increased from $1,000 consisting of 100,000,000 shares of common stock of par value $0.00001 each to $5,000 consisting
of 500,000,000 shares of common stock of par value $0.00001 each.
||The Company completed a private placement in 2005 with certain individuals for 622,690 units at $3.25 per unit for total cash proceeds of $2,023,800. Each unit consists of one share of common stock and one-half of one non-transferable share purchase warrant. The warrant will expire on the earlier of:|
||two years from the date of issuance; and|
||fifteen business days from date that the Company provides notice in writing to the subscriber that the Companys common shares have been trading or traded at a price of $7 or more for a period of ten days.|
|The warrant shares shall have an exercise price of $4.50 per warrant share for the first twelve months, and if still available after twelve months, the warrant shares shall have an exercise price of $4.60 per warrant share starting on the first day of the second twelve month period and increasing by $0.10 on the first day of each subsequent month thereafter until expiration of the warrants.|
Share purchase warrant issued from convertible debenture
On December 13, 2005, the Company issued to
the holder of the convertible debenture 1,035,000 warrants. One share purchase warrants is exercisable for one common
share at $0.00001 per share, until expiration on November 22, 2010. As of June 30, 2008, 835,000 warrants issued to
convertible debenture holders were outstanding which will lead to the issuance of a total of 213,554,987 additional shares of common
stock if fully exercised at June 30, 2008.
Share warrant issued for service
On May 1, 2006, the Company issued 100,000
warrants at $1.47 per share to Mr. Peter Shandro, the VP Business Strategy of the Company, in association with the planning and
execution of the on-line ecommerce initiative of the Company. Compensation expense of $94,775 was recorded with the
issuance of these warrants.