Benefits of an Equity Credit Line
The Equity line of Credit
does not require positive research, an investment case, or an active marketing effort by management and a sales force.
It can be executed in
virtually all market conditions.
Once the line has registered,
Seller can start raising new equity the day Seller asks us to do so.
Proceeds would be received
within four weeks.
Seller retains control over the timing and the price at which new equity is raised.
Seller can ask Investor
to buy shares at any time, regardless of market conditions. In other words, Seller has
a put option on the Investor.
Seller can set a minimum threshold.
Seller is not committed to sell any shares. Investor remains committed for the full period.
Once the Equity Line
is in place, Seller is in a position to take advantage of periods of price strength
by immediately executing a draw down, instead of risking that the favourable market window has shut by the time a secondary
offering has been organized.