Tautachrome Inc (TTCM)

[jpinvest14]

Ok quick course on investing here. Investors don't give their money away. They exchange their money for some kind of ownership interest (equity) or debt. So if ARknet is doing a "fund raise," that means that they are issuing debt or equity in exchange for cash from investors. It's not debt because ARknet is a holding company. It has no collateral, and it has no cash flows with which to make principal and interest payments. It relies on the licensing revenue from Tautachrome. $50 million in debt would require ~$5 million in interest/ year. That's $67 million in sales from Tautachrome just for ARknet to make interest payments alone. That also assumes $0 in taxes on royalties.

So the "fund raise" would involve the issuance of new equity by ARknet, diluting DLM and Jon's interests.