Replies to post #4140 on SaviCorp (fka SVMI)

[PaulWilson]

There is one thing I do not understand.
In which way are the warrants connected with the debenture?

When they pay back the debenture, which effect will this have on the warrants?

Savi will pay back the debenture + the interest, but, from my opinion the warrants will still be at Cornell. They would hve to bought back seperatly. Is this right or did I miss something?

[showmethelight]

Flsun, exactly. The revenues from any contracts can help pay off those warrants. Also a possibility, is they can get a loan (that won't mature until a later point) to pay off the warrant before Cornell can exercise them. They don't necessarily need cash in their Balance sheet to do this. Folks may ask who would lend them money to pay off the warrant and if so, it would be at a higher interest rate, but what if they get a letter of intent (loi) deal that's worth big and the loaning company wouldn't mind lending them that money. They use that money to pay off cornell avoiding dilution and have ample time to get the money to pay off the loan. I've seen it happens before (ie getting a new financial deal to pay off a maturing financing deal). if that were to happen, we would be one big happy family. i think with positive outlook of this company, I doubt that mgmt would allow dilution to the fullest and lose controling interest.

all imho.