Replies to post #37300 on Microelectronics Technology Co. (fka MELY)

[profithigh]

$2M financing to restructure debt

Seems to be the plan according the 17 Nov 2014 PR.

What if MELY used the $2M Financing to pay off the current convertible debt that MELY has right now and used the rest to buy the servers? We do not know in detail what the $2M financing will be fully used for. You said yourself that "These notes combine to a total of $827,666 of debt which can be converted into common stock at the discretion of the debt holder, and at 50-60% of the market price."

I'm definitely not a math genius but I'm pretty sure $2M is more than $827,666. Correct me if I'm wrong there. That would leave $1,172,334 left over for purchases of the servers. From there they would be able to pay off the rest of the notes from the revenue they would receive from the servers being online.

Whose to say that, that is not a valid possibility especially since the $2M is not convertible for another 2 years.

This was stated in their 17 Nov 2014 PR: "The purpose for the debt financing is for additional server acquisition and the restructuring of the dilutive debt the company currently holds on its balance sheet."

http://www.otcmarkets.com/stock/MELY/news

Again, not a genius here but it sounds to me like my idea above is exactly what they plan on doing. JMO though. Continue to do DD.