Don't forget, though, that the company could decide to pay back in cash instead of opt for the 50% conversion....and if it does so, then it pays out an additional 20%.

In other words.......the minimum return on the investment will be 32% (12% interest plus 20% premium if the preferred is paid back in cash) or 112% (12% interest plus the "doubling" of your invested amount if the company decides to do the conversion of preferred to common).

And yes.....it was an amazing deal, of which my group took nearly half of............

BTW......if you are an "accredtted" investor, you probably could take advantage of your special status, borrow (personally) money from those who are not accredited, pay them say 4% on their money, and then turn around and invest the bulk at (in the above case) 32% to 112%.

.....but............who would ever think of doing something like that?