Replies to post #55252 on Flexpower Inc. (FLXP)

[kermit42]

Interesting. It sounds like classic toxic financing, except EFGO is on the winning side.

Basically, each year they get 5% of the company or $100,000, whichever is less. So, in theory, they may not get all their money back.

[R-money]

Once a year EFGO has the ability to recieve 5% of the debt outstanding or $100,000 whichever is less worth of stock. A warrant is like a stock option. The strike price is the average price of the past 90 days. so if the stock really rallies, we buy at a discount. so we may get more thant the 15% interest rate if the market likes their news...