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The Reserve Equity FinancingSM is a cost effective and flexible financing that places the partner company in control of how and when it raises equity and debt, minimizing any potential dilution or disruption to its capital structure. It allows a partner company discretion to periodically sell its common shares when the price is attractive to the company or issue debt to AGS Capital Group ("AGS"). The company decides when the funds are raised and how the funds are utilized.
AGS does not interfere with management's execution of its business plan. We do not seek to impose restrictive covenants or to be a member of the Board of Directors. When we make an investment, a partner company is free to use the funds in any way to enhance shareholder value. Having us as a long-term partner reduces financing uncertainty so management can better focus on achieving its business objectives.
Advantages of our Reserve Equity FinancingSM:
• Company Control - company determines how and when to issue equity and debt
• High floor price protects shareholders from market volatility
• No Overhang - shares are issued as the company determines, no uncertainty regarding dilution
• No non-usage fees, penalties for inactivity nor obligations for management to draw down funds
• Certainty - eliminates financing uncertainty so management can focus on its business
• Inexpensive - low cost way to access capital markets on a periodic and frequent basis
• No Short Selling by AGS or it's affiliates
• Use of Proceeds - Cash may be used for general corporate purposes
Process
The Company secures a contractual commitment from AGS to purchase up to an agreed dollar amount of equity and debt over a 2 to 5 year period:
Pre-Closing
Step 1: Term sheet signed
Step 2: Due diligence performed
Step 3: Closing documents executed
Post-Closing
Step 4: The Company files registration statement (except when utilizing existing shelf)
Step 5: Registration statement declared effective
Step 6: The Company requests capital by issuing Advance Request
Step 7: The Company receives funding
