Eastgate Biotech Corp. (OTC Pink: ETBI) is engaged as a nutraceutical and natural therapeutics company. Shares of the medical supplement company are down 10.26%, through early trading on Monday, May 1, 2017. Over the past month, Eastgate Biotech Corp. has seen average daily volume of 7.79 million shares. However, volume of 23.36 million shares or dollar volume of $414,028, has already exchanged hands on Monday.
Shares of Eastgate Biotech Corp. are facing pressure Monday, after the company announced it has entered into a settlement agreement with Northbridge Financial, Inc., where Northbridge acquired all $208,000 of the company’s liabilities. In an Order Granting Approval clause of settlement agreement, Northbridge was able to convert the debt into 40 million shares of Eastgate common stock. Here is the 8-K detailing of the settlement agreement:
Eastgate Biotech Corp. 8-K Filing:
Item 1.01 Entry into a Material Definitive Agreement.
On April 1, 2017, EastGate Biotech Corp. (the “Company”) entered into a Settlement Agreement with Northbridge Financial, Inc. (“Northbridge”), whereby Northbridge acquired liabilities of the Company in the amount of $208,000 (the “Debt”), which was owed by the Company to third parties related to debts related to the Company’s outstanding liabilities. The Company and Northbridge then entered into an Order Granting Approval of the Settlement Agreement, and Northbridge converted the Debt pursuant to a 3(a)(10) exemption into 40,000,000 shares of the Company’s common stock.
Item 3.02 Unregistered Sales of Equity Securities
Reference is made to the disclosure set forth under Item 1.01 of this Current Report on Form 8-K, which disclosure is incorporated herein by reference.
Here is the link to the full 8-K filing from Eastgate Biotech Corp.: http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12027374