VHGI Holdings Inc fka VHGI

[slapper990]

I'm confused. Is the 45% of the company a collateral or are we giving away 45% of our company for the 'loan'? Seems to me from the wording:

As consideration, the Investor will receive 45% of Lily Group and a lien on Lily Group's assets, together with royalties and/or dividends at the rate of 1.25% per annum. We have the right to buy back the equity in Lily Group at the end of any calendar year, on the basis of the fair market valuation of the outstanding

that it is the latter?! Note that this is an equity agreement, not a loan agreement.

Please correct me if I'm incorrect in my understanding.