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davidam

06/19/10 9:10 AM

#20248 RE: The Rainmaker #20236

I don't necessarily agree with the only way they make money is if the stock moves up. These kinds of financiers can short a stock in order to get shares at cheaper prices and hedge against their positions. You know that. But it does look like the way Lorsch has created terms that will make that activity difficult. As long as he does not borrow too much money from them or have too many shares committed to them
Lots going on here the potential remains great
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RUBY1100

06/19/10 11:06 AM

#20255 RE: The Rainmaker #20236

Rain ... What are the terms i.e. MMR says they need $1 Million
When is the Stock Sold - do they have to wait for an X Ave. of trading days

can Dutchess turn around and sell the sell the shares they buy. When does MMR get the $$$$

How does this work?

I am a little perplexed as to why the RHL Group cant put more skin in the game even charge themselves a higher interest rate. Didn't RL make $50-100 Million >>>>????

This equity financing seems risky - but better to have access to a line of credit then not at all ...

I understand access to capital is difficult for startups but if we could run to $0.50 we could just print more shares and save the 6% finders fee. then again we may not have a buyer and here is Dutchess agreeing to be a buyer