Posted On: 12/07/2015 3:50:38 PM
Post# of 96897
Re: SilentPartner #42907
I hope NTEK will tackle this issue in the proxy. These short maggots will be screwed.
"A convertible note is debt. It’s a loan. The details differ, but usually when someone writes you a convertible note for $100,000, you’re expected to pay it back, along with some interest, in 1-2 years.
But of course, no one really wants that to happen. That’s because of the “convertible” part of the note. The investor is hoping that instead of getting paid back, your company will become the next Dropbox or Airbnb, and at some point you’ll raise a real round of venture capital. At that point, the note will become equity, and instead of having the right to get paid back, the investor will have an ownership stake in your company."
"A convertible note is debt. It’s a loan. The details differ, but usually when someone writes you a convertible note for $100,000, you’re expected to pay it back, along with some interest, in 1-2 years.
But of course, no one really wants that to happen. That’s because of the “convertible” part of the note. The investor is hoping that instead of getting paid back, your company will become the next Dropbox or Airbnb, and at some point you’ll raise a real round of venture capital. At that point, the note will become equity, and instead of having the right to get paid back, the investor will have an ownership stake in your company."
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