Freestone Resources, Inc. (OTCMKTS:FSNR) Files An 8-K Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
Under the terms of the Promissory Note (the “Note”) of Freestone Resources, Inc., a Nevada corporation (the “Company”), in the original principal amount of $1,382,064, payable to Infinity Web Systems, Inc. 401K Profit Sharing Plan (the “Creditor”), any failure to make a payment of principal or interest on the Note within five days of the due date gives the Creditor the right to declare the entire amount of principal and interest due thereunder immediately due and payable. On January 14, 2019, the Company received written notice (the “Notice”) from John L. Genung, Esq., Substitute Trustee of that certain Deed of Trust effective as of June 24, 2015 in favor of the Creditor that: (i) the unpaid principal and accrued interest on the Company’s has been accelerated due to an uncured default in payment on the Note; and (ii) the Creditor intends to proceed with foreclosure of the collateral securing the Note (the “Collateral”). The Collateral consists of approximately 10.1353 acres of real property located in Ellis County, Texas, which serve as the Company’s principal executive offices and operating facility, together with certain personal property as described in a UCC Financing Statement filed in the office of the Secretary of State of Texas on July 6, 2015. As of January 17, 2019, outstanding principal and accrued interest on the Note were $975,163 and $36,869, respectively.
The Notice of Foreclosure Sale accompanying the Notice designated February 5, 2019, at the Ellis County Courthouse, Waxahatchie, Texas, as the date and place of the planned foreclosure sale of the Collateral.
The Company is currently in contact with the lender and seeking a negotiated settlement or restructuring of the debt.
About Freestone Resources, Inc. (OTCMKTS:FSNR)
Freestone Resources, Inc. is an oil and gas technology development company. The Company is engaged in developing and marketing technologies and solvents designed for various sectors in the oil and gas industry. Its products and services include Off-The-Road (OTR) Tire Services and Petrozene. Its Petrozene is used to dissolve paraffin buildup, and it is used for pipelines, oil storage tanks, oil sludge build up, de-emulsification, well treatment, as a corrosion inhibitor and as a catalyst in opening up formations thereby aiding in oil production. Its subsidiaries include C.C. Crawford Retreading Company, Inc. (CTR) and Freestone Dynamis Energy Products, LLC (FDEP). CTR is an OTR tire company. Its primary business is to repair, recycle, dispose of and sell OTR tires, which are used in industrial equipment. It provides services to various international OTR tire dealers. FDEP operates and manages the specialized pyrolysis process that is used to create Petrozene and other byproducts.