Once again another missing piece to our puzzle. Is out 15% equity interest simply straight equity interest, or not. My guess that until Auryn exercise the purchase option MDMN does not have capital contribution requirements. I also believe that Auryn will be public before the option is exercised and we will get 15% of the public company stock. The next piece is whether our 15% could be diluted or not, based on Auryn’s future capital needs. If the outstanding common stock remains fixed and all future financing is done via preferred stock( non convertible) and debt financing (non- convertible) our 15 % could remain undiluted. But if they do convertible debt or equity financing then our equity interest becomes dilutive unless there is a clause that MDMN always maintain 15% equity interest, which I doubt. But we must also realized that Auryn equity in their own company becomes dilutive as well unless they always buy equally into any dilutive financing in order to maintain their equity interest.
The other missing piece of the puzzle of course is what does 15% mean. Does it mean 15% FCI, or 15% straight equity interest or something inbetween. I leave that to whatever you like to believe, my thought is it is probably straight equity interest, but it could be something in-between as well. . JMO