Finance: What is Equity Kicker? Video

com five million bucks at eight percent interest but with

a catch and not a football catch get down The

bank doesn't feel that eight percent is enough to cover

the risk and well other craft that whatever dot com

brings with it they ain't google So in addition to

the eight percent interest shmoop akane valley bank wants an

equity kicker in the form of us A three percent

warrant coverage That is they want three percent of the

value of the loan of five million bucks or one

hundred fifty thousand shares or warrants to buy a share

It's like a really cheap price The option of whatever

dot com thrown in as part of the deal those

one hundred fifty thousand shares our equity and they kick

the debt deal to potentially be worth a lot more

Should things go well at whatever dot com but yeah 00:01:09.099 --> [endTime] We're not hopeful