MMEX Resources Corp (MMEX)

[I FAR I]

MMEX...Equity Financing Will Set A Valuation Of The Company!

https://www.mmexresources.com/pdf/190812_Shareholder_Letter.pdf

"Financing: During the last weeks we have continued negotiations on our potential debt and equity financing. We project to issue more information very shortly."

Don't Dare Miss It!

Noteholders and the Company’s two directors, Jack W. Hanks and Bruce N. Lemons, know that MMEX is looking M-m-m GOOD...Here's WHY You Should Get Ya Some!

Convertible Debt was a way of financing this startup. The lenders became investors and part owners of the company.

The triggering event for when a convertible loan converts into equity is when the company does a large financing for equity (typically by another investor or VC.)

Convertible debt is used to tide the company over until it can get a sizable equity financing deal done, usually within a year. This is why it's also called "bridge-financing."

It is "bridging" the company over until the company can get more financing. The debt will convert into the same terms (with the benefit of a discount because it is earlier in time) as what the large equity financing terms are. The large financing will be done with more scrutiny (because it's a higher amount), with more defined rights, and will set a valuation of the company. The company must have a valuation for the debt to convert into equity. This is of course true because you need to know how much of the company the debt will convert into. You need to know the quantity.

Convertible debt can be deceptively complex (e.g., dealing with convertible debt holders receiving multiple liquidation preference); valuation cap can mean that the investor can own a huge percentage of the company even if the value of the company is very high...Hmmmm

"This is a great project. It has robust economics in it." - Jack Hanks

https://www.mmexresources.com/
MMEX RESOURCES
Leveraging Global Demand
for Energy Assets Located in the Americas.

Take care of the Pennies, Nickles & Dimes and the MMEX $$$$$$$$$$ will take care of THEMSELVE$!!!

You've Been BLESSED!!!