Convertible notes. I continue to research and unde
Post# of 36728
Posted On: 06/04/2014 11:11:10 AM
Convertible notes. I continue to research and understand these better. Please note that my last post on this topic was speculative based on a certain conversion rate of .0003. The reality is likely that notes will be converted at varying rates depending on when the notes were agreed upon. The more I turn up on this, the more legit this company is beginning to look.
"When you invest through a convertible note the startup receives the money right away, but the number of shares you are entitled to is determined during its next round of financing. A price to reward you for the additional risk you took on by investing early."
So this $39k note that was converted last quarter into 130,000,000 shares was likely from early investor(s) waaaaay back when this company was trading at .0003 or there abouts. They were taking mega risk with their investment and should be rewarded. No guarantees they would get their money back. Basically how many of us were rewarded for averaging down prior to the last run.
https://wefunder.com/post/17-how-convertible-notes-work
"When you invest through a convertible note the startup receives the money right away, but the number of shares you are entitled to is determined during its next round of financing. A price to reward you for the additional risk you took on by investing early."
So this $39k note that was converted last quarter into 130,000,000 shares was likely from early investor(s) waaaaay back when this company was trading at .0003 or there abouts. They were taking mega risk with their investment and should be rewarded. No guarantees they would get their money back. Basically how many of us were rewarded for averaging down prior to the last run.
https://wefunder.com/post/17-how-convertible-notes-work
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