I hate to bring up something that may have been resolved but here goes. Perhaps I am missing something, but carefully reading the following paragraph of the news release, it appears that the ability to convert the 4,000,000 shares to stock applies to the INITIAL $4,000,000 in financing, rather than the total $10,000,000 potential, though it is confusing:
Terms of the Financing include long-term debt and equity in the form of Convertible Preferred Shares. Further, up to an additional $6 million in equity could be available for future acquisitions, subject to approval from the financing group. The total financing package would be convertible into a maximum of 4,000,000 common shares based on the acquisitions currently under negotiation
The initial funding is $4MM and the additional $6MM would be for future acquisitions. There is a reference to "total financing package". which would be $10MM, but then the last sentence refers to "acquisitions currently under negotiations" which would be done with the initial $4MM infusion.
Just as an aside, even if we are referring to the initial $4MM, that's a conversion price of $1 per share; using the full $10MM, that's a conversion price of $2.50 per share. Either way, that shows a positive belief in PKGP by the lender.
Could someone clarify this.
TG |
