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Re: Renee post# 15074

Saturday, 09/10/2011 7:52:05 AM

Saturday, September 10, 2011 7:52:05 AM

Post# of 234046
And the financing comes

in multiple, relatively small draws. This insures that the "lender" can sell all of the shares in the draw before the price sinks below the discounted price where he got his shares.

For example, if the company needs $200,000, it will come in 10 , $20,000 draws as opposed to $200,000 all at once. Otherwise, no matter how low the discount, there would be no way for the lender to sell all of the shares above the discount price.

Alternatively, the company will get the full $200,000 all at once, but in the form of a note paying interest (and a finders fee, commitment fee, contingency fee...) and the repayment will be in multiple small tranches of shares, at a discount to the CURRENT market price of course.

The beauty of this (in the eyes of the lender) is that every time they get shares, it is at a discount to the current market price.

Real world example-- Ingen Technologies IGNT, IGTG, IGTN They "borrowed" $2 million from the NIR goup about 4 years ago. Since then, IGNT has repaid over $2 million, tens of BILLIONS of shares, the company has been through 4 reverse splits-- and Ingen STILL owes a little under $2 million

Think about that-- borrow $2 million, pay back $2 million, still owe $2 million on the original "loan"

For real

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