Hey mate don't waste you breathe I have already told the...

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18/11/23

23:31

Post #: 70980927
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Originally posted by Treba: ↑

??? I think you are confused...Motive (and then the same offer was extended to the other major investor that was offering capital just before motive/private deal suggested as to not piss them off) bought 160million "preference" shares for $50million dollars until they meet a certain payback.

They will all be worth the EXACT same as all the existing shares in terms of SP when the private valuation is given. That number is unknown and is not 4.5c or is not 31c.

They only differ in that they get "preference" to dividends to a certain value has been realised and benefits of first payouts if liquidation occurs.

All this is also clearly stated.

The big fear you are promoting about the "preferential" shares is unjustified.

Here is a scenario...Splitit takes out a $50million dollar loan with a bank.
Here is a question....Do shareholders get paid dividends before the $50million loan plus $25million in interest is paid back?
Its as simple as Motive ensuring they get a return on their investment by X amount being the main risk taker....exactly as any bank would want their money plus interest before dividends are given to shareholders.
Its not that scary.
If the company is sucessful the preference shares (bank loan) will be paid off before shareholders benefit.

On top...If the company had a $50million bank loan and went into administration the bank would get "preference" to as much money during liquidation before any shareholders....isnt that the same?

Think more without fear...it will help you with your business degree.

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Hey mate don't waste you breathe I have already told the techpest this,
it goes in one ear out the other,
Must have pealed his business degree of the back of a weeties box,

SPT Price at posting: 4.5¢ Sentiment: Buy Disclosure: Held
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