FAMH - FIRAMADA Staffing Services Message Board

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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: Brad who wrote (2703)	2/5/1998 1:57:00 AM
From: Eamons	Read Replies (1) of 27968

Hello Brad! Your posts and knowledge are greatly appreciated. I'm new to this type of financing but am constantly learning. My question is: What's the difference between this type of financing and simply selling this bank new restricted shares with the option to buy them back (at the original price). Plus giving the bank interest for the privilege? My only experience with finances are personal finances. I just can't seem to correlate this with any type of credit or loan that I'm used to thinking of. If it was straight credit or a loan then the bank would loan the money for interest, payment plan, and collateral. In this case it looks like the collateral will come out of the shareholders pockets in the form of dilution. Not putting the company at risk but the shareholders. No flame or discredit intended. I really enjoy and learn from your posts. Am I way off base here? -Stu

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