Post Transaction:

• Effective cost of capital significantly lower for issuers through Crede Capital Group investments.

 

• When warrants are included, minimal coverage and term used to lower effective discounts and lower the cost of capital.

 

• Minimal use of warrants and their term lessens the accounting charge to earnings and net worth.

 

• Market perception more favorable than registered direct or private placements. No fear of registered directs “stripping of warrants and selling off of common.”

 

• Terms and conditions significantly better under Crede Capital Group investments; no anti-dilution protection, versus full-ratchet protection in Registered Direct transactions and Private Placements.

 

• As capital is deployed by issuer towards value-creation, future raises may occur at higher prices in “commitment and serial fundings.”

 

•  In addition to capital, Crede Capital Group has affiliated ties to the top IR firms. We have the ability to sponsor portfolio companies at conferences with arranged non-deal roadshows, analyst and media coverage.

 

• We arrange and structure Joint Ventures to enhance shareholder value and lower the cost of capital for our portfolio companies.
  

Result

Our portfolio companies have increased nearly 20% since our investments have been announced, significantly outperforming Registered Direct transactions and Private Placements.