Thursday, March 31, 2016 3:32:50 PM
Indeed, all speculative stocks finance themselves this way, this is not a surprise to anyone other than those who are inexperienced investors or traders. Worrying about dilution at this stage really is focusing on the wrong issues, but it seems some here haven't had much experience in the markets and / or speculative companies.
Moreover, I think it is actually a good sign that someone is willing to finance this company at this stage given the risk, that's actually a positive.
Also, please look up promissory note vs convertible debt, they are very different instruments. As mentioned, a promissory note would typically have warrant attached (for a company at this stage of its evolution).
There is a material difference between convertible debt and a promissory note + a warrant as I explained prior!
Good luck with your research!
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