A convertible note is an interest-bearing loan
When you decide to invest, you’re asked to deposit your investment money into an escrow account. Your funds stay in this account until the minimum required investment amount of €100.000 is reached. Until that time the deposited money isn’t available to HollandIP. In case the minimum amount isn’t reached, all deposited monies are returned.
Before 1 October 2019 a new investment round of €4 million is foreseen to be made after which your deposited money plus interest is converted into shares or equity of HollandIP.
Your HollandIP convertible note carries a 7% annual interest rate. When this new financing round is made, you receive a 20% discount off the then determined value of the company shares. If you are an early bird investor (if you invest before the first €100.000 in notes are deposited), you receive an additional 5% discount.