Dear JAY Management,
The term sheet looks terrible, this is a really dumb transaction, upon reading it I felt like I was in a dark alley in a red light district somewhere looking to borrow funds so I could be drugs.
For each $100 you will pay $53 in interest, you will pay $20 in the form of a discount at conversion and you are giving the subscriber $20 in option value.
That's $93 for every $100 you borrow. Unusually there is no 6% fee or 2% documentation fee, this is probably an oversight so beware, your transaction costs increase to $101 for every $100 you borrow.
You are putting in 12% of funds. You would be better off finding a few friendly shareholders and subscribing for say $400k of shares at par, put it in as director loan, and then treading water for 2 or 3 months and going back to market when things are a little better. You will be better off and JAY's shareholders will be better off. Don't pay 6% on your money.
Cancel the transaction, go to market with a cornerstone of say $300-400k, if you get more great, but if not, who cares, you are cum raise anyway, how much worse can it get.
The transaction being offered is utter crap - the provider should be embarrassed, where else on earth does anyone charge this much for a loan.
I hope you read this. Good luck.
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Last
1.1¢ |
Change
0.000(0.00%) |
Mkt cap ! $2.599M |
Open | High | Low | Value | Volume |
1.1¢ | 1.1¢ | 1.1¢ | $442 | 40.14K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 54774 | 1.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.2¢ | 59853 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 54774 | 0.010 |
2 | 468786 | 0.008 |
3 | 692857 | 0.007 |
3 | 1343807 | 0.006 |
1 | 300000 | 0.005 |
Price($) | Vol. | No. |
---|---|---|
0.012 | 59853 | 1 |
0.013 | 98440 | 1 |
0.016 | 258535 | 1 |
0.017 | 177610 | 1 |
0.020 | 400000 | 1 |
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