Integrated Freight Corp (fka IFCR)

[eddy2]

http://www.newswire.ca/news-releases/aurora-cannabis-announces-up-to-25-million-private-placement-of-convertible-debentures-596630791.html

How does a private placement of a debenture effect you and the purchasing of the common share equity.

Let's first examine how low interest rates effect share holders debt as well the ones who put up the collateral for the debt " restricted shareholders ie: common share holders represented by appointed administrational staff.

We know that the legit revenue figure discounting retained revenue is obtained by firstly deducting retained revenue from quoted revenue on your income statement. The collateral debt owed is then deducted from your total legit and illegitimate revevenue.

Now the principal payment of the collateral debt " administration and sales revenue derived from the selling of the debt as well the leasing of the collateral to the preferred shareholders.

Let's step back and look at how the valuation of this obligated debt is calculated and how it can never be repayed in such a low interest inviorment as we have to day due to the quantity of dollars printed.

So if one dollar of interest is earned at a capital cost of 1% you would require one heck of a bundle of cash to make that dollar. Ninty nine times to be exact. That is your multiple in your debenture calculation in the above example given to you.

Your strike price is given by your S filing if a par value is given. No par value then your S value is the same value as par or if a par value is given and no S value stated then the par is the same as you the S value if it where stated.

What's important to remember is that the lower the interest charges the greater both the collateral and debenture debt cost to repay is worth. The good thing is that one off sets the other and because it's equity there is no obligation of payment. Because there is no obligation of payment you can in effect discount the debt or write it down, cancel the obligation if authorization is granted by your elected directors.

So what happens if the debt is cancelled. Well it falls back to assets that are controlled by the elected officers out of the hands of the directors.

If the debt is cancelled and there is no interest revenue noted then the debt will be valued at its equity valuation after depreciation. This is not the money reinvested by investors both common and preferred cause that figure is represented by your capital surplus and retained earnings.

Note the retained earnings for the period is represented as debt on the income statement and the total debt being part of the outstanding share debt that can also be extracted using the backward calculation of the other equity or preferred share equity noted.