RE:RE:RE:Next PPIluv wrote: NO DILUTION and when the CRUX is posted Im sure you will hear that .
Iluv also wrote: A mix of equity debt and convertible . Many are interested
Iluv lets talk a little bit about this mix of equity debt and convertible debt. What kind of equity debt. The people providing the money up front aren't just going to give it to BTR for free. They will want something in return plus. When I hear equity debt it sounds like company shares to me. Thats dilution.
Now onto convertible debt. Again what is being cinverted. The investors give there money but get what in return? Shares? Gold and extra percentage of profits? What?
I found this nice little piece you'll find interesting on convertable debt.
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Reasons to Consider Not Using Convertible Debt
Convertible loan agreements are complicated documents that lawyers should draft to protect the company and the investor. Law fees are costly for a startup company looking for a loan.
One of the biggest reasons companies are hesitant to use convertible debt is dilution. Dilution occurs on conversions when other investors besides the original investors begin buying shares of stock. When a loan converts before the next round of investments starts, investors lose a percentage of their share in the company.