Aethlon Medical Inc (AEMD)

[Aemd_inv]

>anyone here know the terms of the equity investment, they have up to five yrs. to buy. Are they limited as to how much and when they can start.

I expect the terms are the following:

$3.3M to be wired to Aethlon within days of closing. The resulting 11M shares can not be sold on the open market until 6 months from now.

They did request the ability to resell to other institutional investors before then, so they may sell the shares to another institution before 6 months, but that buyer is also limited by the same 6 months from now limit before they can be sold on the open market. Indirectly, Aethlon will benefit from them promoting the company to other investors.

In addition, at any time in the next 5 years, they can invest up to another $4M to purchase additional shares at 0.30/share. These shares can not be sold on the open market until 6 months from now.

There may be a cashless exercise option where they reduce the number of warrants in order to not have to supply the cash, e.g. at 0.60/share, get 1/2 share per warrant, but no cash out of pocket. Downside of cashless is no cash in to the company, benefit is fewer shares created.

The 11M shares purchased now will show up in the outstanding shares count. The warrant shares will not be counted in the outstanding share count until they are actually exercised. They will show up in the unexercised warrants count.