Replies to post #25345 on Somatic Systems Inc (SMAS)

[4HeAlone]

They have had a signed contract, but it has not been put into force yet.

[ceridweneve]

Debt financing,which is a fancy term for a loan,is usually restricted in some way.It could be for a specific project only.When we buy shares,the revenue can be used any way the CEO sees fit.A lender usually imposes terms of use-I will loan you x$ for this but not that at x% for x months.To oversimplify think of your car payment-you can't use that credit line to pay your mortgage.Similarly the loan could be for clinic startups but not TV ads,etc or contingent on a revenue source-reimbursement from the VA for example.This is all hypothetical-we have no idea what the terms of the loan are.Which is why I would like to find out as I posted earlier LOL.Hope this is helpful.JMO and DYODD.