=+Heyen: What happens when we pay back the $5 million? Do the investors get to keep the
Question:
=+Heyen: What happens when we pay back the $5 million? Do the investors get to keep the stock?
Ifthey do, it’ll dilute our ownership.
Stern: How about, if after we pay back the $5 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.
Heyen: It could work. We get our money, but don’t have to pay any interest, dividends, or the 2% of net sales until we start generating net sales. At the same time, the investors could get their money back plus earn a nice profit.
Stern: 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.
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