Yes, I actually prefer this way of doing business to the loans. Not to say the company couldn't use the capital, but by doing it this way, yes, you give up a piece of the subfund, but you also gain a partner and additional resources who actually care about more than just their principal/interest payments. Also, you aren't diluting common stock shares either.
All that said, the jury is still out on whether this all comes to fruition and how the share structure is going to be dealt with.
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