Revised for those who require kid gloves.
What Darcy is doing is amazing! He is basically self financing the company. He is converting about 125 million share into preferred class B shares. At a cost of $.001 or $125,000. Those shares are worth $750,000 at current market value. So he is basically giving the company $625,000 in equity if those shares were to be reissued. All he is asking for in return is 5% on his $125,000. This is a gift!!! ( I own a very profitable company and have lenders begging me to loan me as much money as I want at 4.9%. I also have investment in apartment communities where I am guaranteed 8% paid quarterly.) 5% is nothing
By getting 10X voting right on those shares has guaranteed that no hostile or other takeover of the comany can happen!
Is this Toxic Financing? Perhaps... He does have the option of converting those shares after 6 months. However, he is the largest share holder in the company. Any other 3rd party lender would convert those shares at 6 months and 1 day and move on to the next desperate pinky without thinking twice.
Ask yourself. Why would he convert those shares destroying his investment in the company? Additionally he would lose his 10X voting on those shares if he converted leaving the company vulnerable again. Also he dose not need the money!!!
Think about what he has done and the team he has assembled.
IMO we are golden!
$NDD!!!
