Alkane Inc (ALKN)

[eibbanker]

I don't think that the MEAP could be used as collateral as it is a reimbursement on expeditures and not a grant.. Therefore it is not a guaranteed cash stream but a rebate.

The first form of collateral would be fixed assets - which there are not. Second would be a chattel mtg on non-fixed assets (ie. company car, etc).. Others would be receivables, inventory etc..which there are none.

One potential, in this instance, any debt financing could potentially be secured by a personal guarantee by Walter Stunder (pledging his shares and/or personal assets- i.e home etc) or via other inter-related companies. Again, investors of NSDM do not have access to this information so tough call which is why I kept saying that I wanted to see them to make an informed decision on the investment.