factoring example ---But the problem is, is that now UIC's share price is 2 cents.
From their NR:
Ashlar Capital
Ashlar Capital Corporation is a financial company in Vancouver which specializes in factoring receivables for a wide variety of industries. In its relationship with Unitec Ashlar bought substantial receivables from the company, much of it to help finance the projects in South America. The interest rate on this debt was 2.5% per month. This was a commercial transaction in the normal course of business and was not presented to the Exchange for approval. When the major Chilean project was cancelled, Ashlar was faced with a non-collectible debt. There was a personal guarantee, as security in addition to the receivables and inventory. In March 2000, discussions began with Ashlar Capital for conversion to equity.
A conversion of $725,000 at $0.13 per share was completed concurrent with the SOCO debt conversion, as announced October 10, 2000. After this conversion Ashlar held 18% of the issued and outstanding shares. As part of the conversion the obligation of a personal guarantee of the debt, which was now over $850,000, was discharged.