Sorry I am just getting back to the board but it has been a busy last few days.....ironically enough negotiating term sheets with my investment bankers & institutional investors
Please understand I have NDAs/agency agreements in place so I can't discuss the specifics of my own financing efforts other than to say that I am raising a similar $$$ amount, but as emz mentioned the funding for ANDI will come from an investment fund (hedge fund, private equity fund, family office, etc.) that is introduced to SWS by the investment banker.
The investment bank is paid on a monthly retainer basis and/or on a success fee basis.....my guess is SWS negotiated a success fee as they don't have much cash. The success fee will be cash, cash + warrants, cash + equity, or some combination of the three.
The timelines to raise capital could be months or years.....from my own experience it is a slow and time-consuming roller coaster of a ride where you can literally be on 3-10 conference calls a week looking for the right investor that isn't going to bend you over and insert.....well you get the idea
Once you connect with what seems to be the right institutional investor it all comes down to the type & quality of the collateral you can offer in exchange for their investment.....but make no mistake they are all vultures and will seek to get as much value in return for their investment as humanly possible and then once you agree they will put you through the proctology exam that is their "due diligence" process before you close on the financing.....typically from the time you agree to terms to closing will be 45-60 days so we will need to be patient here peeps.
Fortunately for me I have a very strong EBITDA business in a very institutionally friendly sector (commercial aircraft/jet engines & parts inventories make for good collateral) so i have been in front of the top funds in the world that have hundreds of billions of $$$$ in assets under management......SWS isn't in the same position so it is interesting to me that any banker is willing to take them as a client as most of these guys won't engage unless they are fairly certain they can close a deal....the reason being the individual investment bankers are compensated mainly on performance (successfully closing deals) so they won't waste their time on weak deals that are longshots.
Gotta run. Hope this helps peeps!!!