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Re: Luca Brasi post# 10811

Thursday, 07/31/2008 2:32:12 PM

Thursday, July 31, 2008 2:32:12 PM

Post# of 103340
I addressed that with Chad and although he asked not to post his response, I will sum it up. It will be a cash loan, probably with an interest rate of 8-15% annual and be paid back with cash. The loan is secured with common stock, typically at a discount price to the current market value (that way if the company defaults, the creditor can assume those shares and sell them in order to pay off the debt). Since the money would be used for expanding their business and locking in contracts, there shouldn't be any worries about not being able to repay the loan.

You are more than welcome to contact the IR if you would like it better explained.

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