TAVA Technologies (TAVA-NASDAQ) Message Board

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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Judge who wrote (20659)	7/15/1998 8:27:00 PM
From: CalculatedRisk	Read Replies (2) of 31646

Cathleen, would you consider an interest rate of 22% excessive? That is the actual rate of interest (including the discount for warrants) TAVA is paying on the new loan! Here are the actual terms from TAVA's SEC filing: "Promissory note payable to an investment company net of a discount of $315,000. Interest at the rate of 11.5% per annum is payable quarterly." A $315,000 discount over just 9 months ... on a $4M loan! (March 27th to December 31st). And if the balance is not paid by Dec 31st, more warrants will be issued! And IMO the discount is too low. I calculate a discount closer to $500K. Have you ever seen a total interest rate this high? Regards, Bill

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