iGen Networks Corp (IGEN)

[Ellis1]

Crown is not in control. The agreement is essentially a PUT OPTION for IGEN. If they need shares Crown is obligated to buy them at the market price on THAT trading day. The .0072 is a reference point that was the share price on the day the S1 was signed. Igen can force Crown to buy either 200 million shares or $2.5 million worth over the course of the agreement. Anytime Igen needs capital they have to do it in $10,000 increments or more. IGEN controls how many shares get issued, not Crown.

While I don't love dilution, it does make sense for IGEN to have a ready line of credit. They do not have much cash on hand as we have seen from recent financial statements. Even if they sell all 18,000 units they have ordered in the next 3 months, they won't necessarily receive the cash immediately. Federal and state governments often pay out in 60-90 days. I would assume Neil would want to keep the ball rolling once sales get underway. Having this line of credit assures that the company can continue to purchase new units, hire more staff, and continue marketing.

Like everyone, I hope that revenues will be eventually self-perpetuating, and they won't need the entire line of credit.

Been invested here for nearly 2 years, will continue to hold. Best of Luck to all, as I rarely post.