Alternatives to Conventional PIPE (Private Investment in Public Equity) Financing

What is the Intelligent Alternative?

It is the opportunity to gain fast funding, flexibility, and greater shareholder commitment through use of an Intelligent Alternative HedgeLoan® structure.

Your publicly trading company needs to raise $1,000,000 in capital but can’t do asset-based lending and can't afford to wait for a PIPE to be completed.

The Solution: Use a HedgeLoan to do an off-balance sheet financing with shareholders friendly to the issuer and gain flexibility and greater shareholder loyalty in the process.

Steps:

• John Shareholder, a large shareholder in your company, pledges $1.25MM for a new HedgeLoan @ 80% LTV.
  
• Shareholder then lends $1MM to your company in exchange for a $1MM repayment note at 9% interest, with warrants or options as an equity incentive.

Behind the Numbers:

Borrower benefits:

Can help enhance the value of the collateral pledged for the HedgeLoan. Can be structured so that borrower also receives warrants which could have considerable added value (terms negotiated with the issuer). No debt service - since the borrower’s note will run concurrent with the loan, the debt service will be covered by interest paid to borrower on note (payment terms and dates can be structured to fall just prior to due date on HedgeLoan.)

Issuer benefits:

Quick funding – 2 weeks or less possible vs. many months with PIPE or secondary offerings. Many registration and legal costs associated with PIPE or secondary offerings are not required with a HedgeLoan solution. Shares go (via warrants) to presumably friendly hands (current large shareholders) rather than to unknown parties.

Please fill out the form below and one of our staff will be in touch with you shortly. Get more information at www.hedgelender.com. Call us at 1-800-244-7616, or go directly to our full online application here.