ANTs Software Inc. (fka ANTS)

[wingtrade]

IronRidge LIFE program

Our Liability for Equity (LIFE) program allows public companies to satisfy trade payables, debts and other liabilities in exchange for unregistered common stock. Ironridge is the industry leader in this innovative financing structure, which substantially reduces the transactional costs and time necessary to complete a financing.

We will pay a company’s creditors in cash, in exchange for an assignment of their accounts, and then agree with the Company to satisfy its payables for common stock. No registration statement is required, and there are no registration rights.

Issuers can use a LIFE exchange to clean up their balance sheet, by converting short and long-term debt to equity. This allows companies to repurpose their resources away from paying existing obligations and toward funding future growth.

LIFE transactions are most typically used to pay off outstanding accounts payable owed to service providers such as lawyers, accountants, landlords and investor relations firms, as well as products suppliers, manufacturers, equipment dealers and other key vendors. We can also repay promissory notes, debentures and outstanding loan balances.

If a company is cash constrained and managing outgoing cash flow, the LIFE program can renew and strengthen vendor relationships. Ironridge takes guidance from the company on payment terms and priority, and which creditors are best suited for the program.

In our experience, the program works equally well for current accounts. Although companies remain free to negotiate excessive invoices, Ironridge typically pays creditors 100 cents on the dollar.

In addition to standard and customary due diligence, the LIFE program has specific protocols and procedures to ensure full compliance with applicable and other laws. Requirements vary depending on the nature and age of the obligations, the reporting status of the issuer, affiliate relationships and insider status. This type of transaction requires specific expertise to ensure compliance with all regulatory requirements.