Nowadays getting financial support has become very easy for businesses across the globe. The newest addition in this series is HDS International Corp (OTCMKTS:HDSI). As per the reports, the company is all set to receive funding from a West Coast Institutional Investors. If everything goes fine, then HDS will receive around $4.6 million in the form of debt and equity.
Insights On The Matter:
The company has confirmed the receipt of term sheets for unsecured debt, preferred equity, and debentures from three different entities. Apart from the funding updates, the company has also negotiated the re-assignment of various convertible notes that were earlier issued to an investment group based in New York. In order to complete the assignment of these notes in an easy way, the conversion process will be executed in a certain way that it could comply with the interest of shareholders and the company.
All the shares that were earlier reserved for these notes have now been exhausted. In order to execute the conversion, the company will need to reserve extra shares for these notes upon the completion of reassignment. Management of the company believes that HDS has enough shares needed to pledge for the new requirement.
The negotiation process was not as easy as it sounded. HDS had to work with Source Capital Group, Inc, its investment banking arm to plan out the strategies for weeks. Management of the company is delighted with the efforts put in by the SCG. According to Paul Rauner, CEO, HDS International Corp (OTCMKTS:HDSI), it couldn’t have been possible without the support of SCG.
The extensive support offered by SCG helped the company in arranging the financing in such a short time. It will not only benefit the company in the short run, but years to come. The management had planned the growth path for the company, and execution of this financing was the first step in that path. With the support of SCG, the first phase has come to a successful conclusion.