you borrow 1mill from associates in the investing world. they charge you 40,000 in fees. the interest to be paid is on the 1 mill not 960,00. therefore you pay 120,000 plus 40,000 in the first year = 160,00, this totals 16% interest rate. second year it is 120,00 with no trailing fees, back to 12%. because they have been so generous you give them 6,666,666 options at 10cents to take up new shares in 2 years time. I'm not financially minded so excuse if I don't have a handle on these loan terms. Is MC too embarrassed to go to his current shareholders for a loan. He would rather give money away to these sophisticated investors!
PFT Price at posting:
9.2¢ Sentiment: None Disclosure: Held
