=+The following is a conversation between Rafel Baltis, the chief executive officer of Biosciences Unlimited Inc., and Dr. Oscar Hansel, the leading researcher.

Rafel: What are we going to do? The banks won’t loan us any more money, and we’ve got to have $10 million to complete the project. We are so close! It would be a disaster to quit now. The only thing I can think of is to issue additional stock. Do you have any suggestions?

Oscar: I guess you’re right. But if the banks won’t loan us any more money, how do you think we can find any investors to buy stock?

Rafel: I’ve been thinking about that. What if we promise the investors that we will pay them 2% of net sales until they have received an amount equal to what they paid for the stock?

Oscar: What happens when we pay back the $10 million? Do the investors get to keep the stock? If they do, it’ll dilute our ownership.

Rafel: How about, if after we pay back the $10 million, we make them turn in their stock for $100 per share? That’s twice what they paid for it, plus they would have already gotten all their money back. That’s a $100 profit per share for the investors.

Oscar: It could work. We get our money, but don’t have to pay any interest, dividends, or the $50 until we start generating net sales. At the same time, the investors could get their money back plus $50 per share.

Rafel: We’ll need current financial statements for the new investors. I’ll get our accountant working on them and contact our attorney to draw up a legally binding contract for the new investors. Yes, this could work.