annual interest rate of 17.25% for $5 million means a total interest for 1 year of $862,500.

Since they mature December 31, 2019 that is 8 months of monthly interest due at $71,875/month or $575,000.

let that sink in for a bit. 

For $5 million we are on the hook for $575,000 (11.5 % interest on principal) regardless of sp performance and they get 3,289,500 warrants exercisable at $0.35. The warrants when exercised are worth $1,151,325.00 additional funds to the company. 

Is this really the best deal Mika could get us given pending sales announcements? Given below:

The Small Business Administration (SBA) sets the maximum interest that banks can charge on CDC/504 loans. The current maximum interest rate ranges from 4.39% to 4.67%, depending on the size of the loan and the amount being borrowed. The maximum interest rates on CDC/504 loans are also based on market interest rates.Apr 1, 2019

Just to keep it simple let’s say 5% is where things could have been negotiated with a big bank. Given all that we have been told through news releases about LOI and expected sales it should not be too difficult to “show them the light” so to speak and assure them that it’s worth loaning us the $ as a bridge without warrants being issued. So much for non-dilutive financing! 

5% annual interest on $5,000,000= $250,000.

At $71,875/ month, that folks is 3.5 months of interest we are paying to the loan $harks we are dealing with plus further dilution. 

Still think Mika negotiated a good deal for us? I, like everyone else here only know what we are told. Given the news releases to date surely we could have gotten a conventional loan as a bridge until the sale of DL. People celebrated the announcement of this deal. This money did not come cheap people. These are loan $hark rates and if we had the goods to show, should have easily been able to save the company over $250,000 and 3plus million warrants (in reality, shares)((IMHO)). 

BTW, for the company who gave us this great financing deal to get its $5 million back, the sp needs to get to $1.52. Given that they are likely sharp enough to exercise the warrants well before they incur significant capital gains costs, I expect they will take their staff on a sweet vacation or two in July compliments of PTI. I sure would. 

I am truely in the wrong business. 

In closing, all I can say is that I hope by December 31, 2019 we can be well past the $1.52 mark with sales and lic agreements with the big boys. We poor dogs need some bones after all these years. 

GLTAL

Derekwpg