Today's 8k concerning the latest "financing" contains some interesting details that expand and clarify the information in the PR from a couple of days ago:
The screws are being put to Wave management to monetize the IP.
" In addition, an event of default will also occur if Wave does not receive an offer to license or purchase one or more patents owned by Wave or any of its subsidiaries within 60 days of initial funding by MBFG."
This is a heck of a warning. The amount they can factor right now won't cover the total of the loan they have due next week.
" While this facility provides some assistance in financing our operations, it does not fully address many of the Company’s pressing financial challenges, including the $588,000 Convertible Bridge Instruments that mature on December 23, 2105."
The lender will own 9% of the company due to the warrants. There is no reason for them to not exercise them after 6 months because they can't lose money on them. So much for not financing the company on the back of the shareholders.
"As additional consideration for entering into the Addendum, Wave issued to each of MBFG and its co-lender Agility Capital II LLC (“Agility”), a warrant to purchase up to 2,750,000 (5,500,000 in the aggregate) shares of Wave’s Class A common stock at an exercise price of the lower of (a) $0.15 per share or (b) the lowest closing market price of Wave’s Class A common stock within five days of the date of exercise of the warrant by MBFG or Agility, as applicable (such price, the “Exercise Price”)."
The lender appears to be valuing the company at $15,000,000. That's $0.25/share.
"in connection with an acquisition of Wave resulting in gross proceeds payable by the acquiror of at least $15,000,000, then Seller will pay MBFG a termination fee equal to the highest total cumulative fees charged by MBFG during any 90-day period after the closing date of the Facility."
Being "wrong" has been extremely profitable.
AI
