These include equity finance, debt finance or any hybrid instrument such as convertible loan, and are means by which businesses obtain finance for smooth running.
In practice, these are essentially subordinated loans and dividend rights capital, but not other financial instruments, such as loans, convertible loans and other outside funds.
The funding package will require shareholder and other regulatory approval, and comprises a $10 million convertible loan to be drawn down in two $5 million tranches.
The shareholders also authorised the directors to apply any outstanding convertible loan, shareholders loan toward payment for any rights or shares subscribed for by such person under the rights issue.
Second, a subordinated convertible loan with an outstanding amount of $1.9 million has been replaced by a new subordinated term loan of the same amount.
However, in actual, real-life scenarios, the calculation of post-money valuation can be more complicatedbecause the capital structure of companies often includes convertible loans, warrants, and option-based management incentive schemes.
