Convertible Note Lending 101 + Eagle Equities Update

Eagles Equities advanced to INTV 586k. After initial expenses (pre paid interest and legal fees), INTV received about 550k.

Here is how convertible notes work.

Most notes are not eligible for conversions until 6 months hold period. However, in this case, INTV had filed S1, to register shares for sale.

This was a condition requested by Eagle Equities. The main reason: convertible note lending business is slowly being pressured and eliminated by SEC, thus most lenders are quitting this type of lending to avoid potential future legal issues.

Once SEC approves S1, it becames effective and Eagle Equities can start conversions, but earlier then standard (rule 144) 6 months.

Standard note containes: (1) annual interest rate, (2) lookback – a formula based on 5 lowest prices during 15 day period, prior to any conversion and (3) discount on shares – or in INTV case, 30% off lowest average price.

So if average price for past 15 days was, 0.05, Eagle will receive shares priced at 0.035.

How many shares at one time?

So, if Eagle Equities decides to convert 0.0499% (max allowed) of INTV's current oustanding shares issued, they can get:

> 140 mil o/s x 0.049% = estimated 6,860,000 shares.

By how much does it reduce an outstanding debt ($586k) owed to Eagle Equities?

> 6,860,0000 x 0.035 cents = $240,100

So, Eagle can sell any amount of shares and then able to execute another conversion, however, they can not own more then 0.049%, at any time.

As of 01/31/21, Eagle Equities Note has a balance of $353k. INTV has no other notes outstanding as of 01/31/2020. Zero, null, nada.

Note that most companies are not capable to securing this $$ size and type of funding and able to file S1 registration statement.

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