Quote:
Originally Posted by geos
So there is going to be a note/contract of some kind and a security interest in the property?
NI 45-106:
“debt security” means any bond, debenture, note or similar instrument representing indebtedness, whether secured or unsecured;
I'm not a lawyer or in any capacity to provide a professional opinion on that and I'm not suggesting you are not in compliance with securities regulations... but perhaps you should consult such a professional. Maybe you already have. That's fine. Just suggesting.
And I'm not trying to discredit or to provide a positive or negative opinion on your opportunity either. |
I will pass this along to the lawyers but I don't think it was clear how the arrangement is made.
The company itself is not raising funds - it is simply a loan agreement between to private parties. For example, I have a few million to spare and am willing to loan it out to an individual at an agreed upon rate and secured by collateral. You are a potential investor that may find it difficult to get conventional financing and agree to the terms of the loan. A somewhat more mundane example would be my brother lending me $10k to buy a car and we make a legal loan agreement. If I fail to repay as per the schedule he gets the car.
The only involvement of the company is to have the lawyers draw up the contract. A quick example of something similar can be found:
http://www.lawdepot.com/contracts/loan-agreement/
No debt securities are being offered/sold at all.