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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brubaker who wrote (5154)	2/22/1998 9:29:00 AM
From: Bob Walsh	Read Replies (1) \| Respond to of 14226

Larry, I agree with your point. Debt financing for a start-up is difficult but possible - ie, not only are there some corporate assets which may be pledged (at a fraction of what we believe they may be worth) but also the personal assets and guarantees of the founders & principal shareholders. The debt servicing (interest) then becomes a large part of the cash burn rate and can kill a start-up. Equity financing, while it causes dilution, doesn't increase the burn rate. Regards, Bob