SaviCorp (fka SVMI)

[bly03]

bavarian boy,

I saw that (the limit of 4.99%).

It is actually fairly common in these type of equity finacing deals for the lender to have that type of self imposed limit, in order to avoid filing requirements.

If they hit 5%, they would need to file a Form 13 (D or G, one for when they first hit 5%, then the other in subsequent years to document the change to their holdings). Therefore, it is not uncommon to have the 4.99% limit.

Sometimes, you see these deals with a 9.99% limit. If they hit 10%, then they would have to file for every sell, just like a company insider.