Legal Terms

Convertible Note Terms

Complete terms and conditions for MORE Seller Financing convertible note investments

Key Terms Summary
Investment Type

Convertible promissory note with 10% annual interest

Interest Rate

10% per annum

Accrues and compounds annually until conversion or maturity

Valuation Cap

$12,500,000

Conversion valuation ceiling

Conversion Discount

20%

Applied to qualified financing valuation

Maturity Date

August 2030

Principal + accrued interest due on demand

Minimum Investment

$100

No maximum limit

Conversion Mechanics
How and when your note converts to equity

Conversion Triggers

  • •Qualified Financing Event: Any equity financing of $500,000 or more
  • •Change of Control: Acquisition, merger, or sale of the company
  • •Maturity: August 2030 (if no prior conversion event)

Conversion Valuation

Your note converts at the lower of:

  • 1.The $12,500,000 valuation cap, OR
  • 2.The qualified financing valuation discounted by 20%

This ensures you receive favorable conversion terms regardless of future valuation

Interest & Repayment

Interest Accrual

  • 10% annual interest rate
  • Compounds annually
  • Accrues until conversion or maturity

Repayment Scenarios

  • Conversion: Note converts to equity (no cash repayment)
  • Maturity: Principal + accrued interest due on demand
  • Early Repayment: Permitted at any time
Risk Factors & Disclaimers

Important Investment Risks:

  • •Early Stage Risk: MORE is an early-stage company with execution risk
  • •Illiquidity: Convertible notes are illiquid; no secondary market exists
  • •Dilution: Future equity issuances may dilute your conversion rights
  • •Market Risk: Real estate and lending markets are cyclical
  • •Regulatory Risk: Changes in lending regulations could impact operations

This summary is for informational purposes only and does not constitute legal or investment advice. Investors should consult with their own legal and financial advisors before investing. The complete terms are contained in the Convertible Promissory Note agreement.

Questions?

For questions about convertible note terms, investment mechanics, or to request the full legal agreement, please contact:

Ryan Leahy
[email protected]

Eric Bennett
[email protected]