4 ms·
So is the technicality of a warrant vs a SAFE that lands these founders in this position? As a SAFE is an agreement for future equity, would it also be treated
by pedalpete 2y ago
So is the technicality of a warrant vs a SAFE that lands these founders in this position? As a SAFE is an agreement for future equity, would it also be treated as a warrant in a bankruptcy?
Why would NewChip decide on this structure vs the more common?
- LocalH 2y agoPerhaps Ryan thought he might make a windfall from any warrants that weren't purchased in bankruptcy. "But startups’ objections were made in vain when the court overruled them. A bankruptcy court’s goal is to oversee the selling of assets to settle debts. If there is money left over, it’s paid to shareholders. Ryan is the majority shareholder."