Thought this was an interesting *example* of financing for a cash strapped company. This company is in no way related to Wave (other than being one I've also lost money on!), but it appears that they to are having some short term cash flow problems. In much the same way as the Gilder thing was debated, I'm sure a deal like this for Wave would suggest pros and cons. But it wouldn't surprise me it something like this were done if Wave was truely on the verge of cash flow neutral.
attcav
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On October 27, 2008, Nature Vision, Inc. ("Nature Vision") borrowed $700,000 from Jeffrey P. Zernov, CEO and a director of Nature Vision, to meet its short term cash flow requirements. The unsecured loan was made under the terms of a Promissory Note dated October 27, 2008 in the principal amount of $700,000 executed by Nature Vision in favor of Mr. Zernov, bearing an interest rate of 15% per annum. All principal and accrued interest on the Promissory Note is due and payable in full on January 1, 2009.
In consideration for Mr. Zernov's loan of $700,000, Nature Vision issued to Mr. Zernov a warrant to purchase 50,555 shares of Nature Vision common stock at an exercise price of $.90 under the terms and conditions of the Warrant for the Purchase of Shares of Common Stock of Nature Vision, Inc., dated October 27, 2008 (the "Warrant"). The Warrant may be exercised by Mr. Zernov at any time on or after October 28, 2008, and on or prior to October 27, 2010.
The foregoing statements are qualified in their entirety by the terms and conditions of the Promissory Note and the Warrant, copies of which are filed as exhibits to this Current Report on Form 8-K.
AI
