9c is a floor price and there needs to be one as part of a Note...

9c is a floor price and there needs to be one as part of a Note so that's the price, I didn't invest based on that part. The conversion rate is going to be around 20c which is higher than the current share price so that's a positive. Bear in mind that there are December 25c options to convert so there will be some pressure to get to at least 25.5c in the near term, the attached options for the Note are a higher price again and higher than the options from the raise earlier this year so there is incentive to get a higher share price. If HMD cannot create something with this cash given how close the trials are to finishing, then it is waste of time investing. The floor price is largely irrelevant.

10% interest for a business with revenue below expenditure is pretty cheap. Go and have a look at what Private Credit charges businesses for debt and then also look at the equity they take too. Have a look at Tractor Ventures etc as an example of revenue based lending to early stage companies. SAFE notes in VC are usually higher than 10% so the pricing isn't bad at all. SAFE notes (Simple Agreement for Future Equity) can be at amounts like 40% discount. If HMD was an unlisted

As I understand things to be, this raise was completed by a handful of actual investors, not just guys with excess cash and time who muck around with medtech specs for fun. Those actual investor types have strict mandates as to what they can invest in hence the issue of a debt/equity instrument rather than equity in its own right. If you have a mandate which restricts investment below $60m Market Cap then you cannot buy shares in HMD however you can take a debt/equity position. This is where the clause regarding the $4m funding becomes the real point of interest in the whole event. If the funding from this raise creates shareholder wealth, i.e an appreciating share price, then I wouldn't be surprised to see some interesting names appear on the register. I would not be surprised if some of those type of investors who operate on a pure Alpha model (no MC limit requirements etc) are current buyers of disgruntled investors. Maybe someone can start a Broker Data thread with updates for the top 20 etc?

If you felt strong conviction that a strategic investment of $4m was around the corner why would you raise $2.32m?? Is there a possibility that by raising extra funds to support the balance sheet you could pick up a good contract as you would now be able to demonstrate that you will still be in business next year and thus able to support the contract you are pitching for? What about if by bedding down some contracts, that require proof of funding, you can then attract the strategic investment of someone serious within a market that you are trying to secure?

The key element of this raise is that $4m funding amount. Why raise $2m to look for $4m when the support was such that you could have just got $6m anyway?? Clearly something is either afoot and close by or they are inept. The device works but the contracts are still binary outcomes.. it's all a bit of a grey area that they are operating within however all of the variables are conveniently black or white. Who would want a $4m investment in HMD? Why not $5m or 10% etc? Why such an arbitrary figure as $4m? that's the most interesting part. If the "funding" isn't about an investment then who is about to pay $4m as part of a contract??

These are my thoughts, not anything more. This is pretty much what I was thinking when the details of the note came out. The only solid bit of info that I was given was that it was filled before I was contacted and that scale backs would happen, everything else in my little ramble above is speculation. Re-read the announcements, that Spanish mob wanted to distribute HeraCARE within Spain, they would be a likely investor and $4m would be pocket change for them, same applies to the Brazilians... Hapvida is a highly acquisitive company, they might insist on a shareholding in order to do more business and also want to see a stronger balance sheet before they do so? Mayo has already demonstrated that it is prepared to invest in HMD, maybe they want a bigger piece? Why $4m............

dunno, dunno, dunno..... all very interesting indeed!