10% compounded monthly. COMPOUNDED MONTHLY.
They will owe WAY more than $29k on this note. Read again:
"Interest accrues on the principal amount or portion thereof which remains unpaid from time to time as well as any interest outstanding, from the date the principal amount is advanced until and including the date upon which the principal amount and all interest due under this promissory note shall be fully paid."
None of this is illegal and I wouldn't imply that it is. But this is NOT a case of Bruce Bent taking big risks in the market. Net of all the CPSM transactions the total net from him/MAAB is perhaps $5M. With ~60M shares owned by MAAB, a buyout at 0.25/share puts him $10M up, and we haven't even talked about the $6M+ impairment taken in Q2 as a tax benefit. Nor the remit of interest owed on notes.
A "buyout" of this company today would cost someone roughly $100M. Do you think there is $100M of value here, with no special technology other than a flight control software suite that seems to control about as well as the EHang? I won't say nobody will spend that much -- Uber spent $100M for Jump, which was equivalently insane. But more than $100M is nonsensical, and at half or even 1/4 the current share price Bruce Bent does very well.
