Ann: Pre-Paid Royalty Mandate, page-17

Good god your post reads like someone who barely passed finance 101 in uni that he can impress others by just regurgitating paragraphs from some financial textbook without displaying any critical thinking at all.

Yes the royalties arrangement could be structured so that they get paid ahead of equity but that’s not problematic. That’s just the nature of equity. By your logic equity investors should be upset about any debt financing because debt also gets paid ahead of equity, but that’s clearly nonsense.

Just because they’re pushing ahead with a royalties type of financing does not indicate at all that they couldn’t have arranged financing of a different kind.

Your suggestion that major shareholders could just tip more in to avoid dilution (of who?? Sounds like those who don’t tip in would be diluted) is the kind of pathetic rubbish analysis I’d expect from a mediocre finance student.

The rest of your ‘analysis’ is about as mediocre as your opening so it’s not worth picking apart but it’s pretty embarrassing how inaccurate it all is