I’m an accredited investor which doesn’t mean much. To be one, you need to earn $200k or more a year as an individual, $300k or more as a couple, or have more than $1mm in net worth (not including your primary residence).
I don’t really know much about investing. I’ve successfully been a part of multiple startups, some of which I’ve exited with some small payouts, and I’m used to complex compensation structures... even have some legitimate post-grad education in finance and economics... but investing has a language all its own and many things that are new to me that I don’t understand.
My wife and I have had a small amount of financial success, nothing crazy, and I could use all the help I can get from fellow Redditors.
Here are some of the details of this opportunity:
Warrants exercisable to acquire one common share of the Company at $5... Company agrees not to dispose of common shares issuable upon a Warrant for six months after the completion of an IPO.
Issue Price is $1.70
Lock-up states that each purchaser can’t sell Unit Shares until 4 months following an IPO
What does all this mean and what else should I be looking at?
If the issue price is $1.70 then when and where does the Warrant come into play?
Can I negotiate a lower price?
I see nothing about the shares being non-dilutable, can I stipulate that?
What other terms should I look for?
What other terms should I require before investing?
Any advice would be helpful.
Submitted July 19, 2019 at 07:05PM by flatironbrian https://ift.tt/32Cyy0F
