Verb Technology Company Inc (VERB)

[dukeb]

The funny thing about money lenders is that they want to be as sure as possible that they get paid back. That requires some sort of collateral or a pledge of revenue so that even if the company fails the lender is able to recoup some of what they lent out.

The company has already pledged a portion of future revenues to an existing lender.

What collateral does VERB have to offer?

The company is left with two choices:

1) Raise capital by issuing new shares, thus diluting existing holders.

2) Issue convertible debt, which allows the lender to convert the debt into shares. This also dilutes existing shareholders.

Perhaps a VC could step in to fund VERB. Of course they would want a big chunk of equity in return and they would likely want a significant presence on the BOD. First thing the VC would do is show Rory the door.