Yea sort of, its a way to raise money. they are loans and NGW needed this cash raise to expand etc. It's a way to grab cash at low rate when a conventional lender might want nothing to do with them (i.e. risky Cannabis industry). The risk the investors take is they are unsecured, so if for example NGW was to have gone under they will have to wait behind secured creditors to get paid, if anything down the road.
The investor(s) bought them really for the option of converting them into stock (shares of NGW) because upon maturing they could cash in for stock of which they believe is a promising company (so they make more money).
So YES, now that they are shares this will dilute their ownership of the company, which is what this release is saying happened. However I believe in NGW's case this was a great way to go and for good reason early on. It was in the best interest of all parties since low rate vs conventional (which was probably a tough way to go) and timing wise it worked out great for investors (and stockholders)- now NGW has Rev's and headed up vs diluting on way down.
Question for board: since this is saying they have shares now were the possible big blocks for sale we saw recently some of these investors that cashed in recently for stock and sold?
