Information Technology Reference
In-Depth Information
Micro Computer Machines common share. (Source: York University
Computer Museum.)
cost to the company.
MCM
could sell 30,000 common shares at,
say, $10 a share. Or, it could prevent share dilution by arran-
ging a bank line of credit for the required amount, guaranteed
by some of the existing shareholders. In return, the guarantors
would immediately receive some nominal number of shares and,
later, some additional shares for each day the guarantees were
in effect, according to some agreed-upon formula. The latter
solution not only seemed more beneficial to the shareholders but
could also be implemented with some of the outside sharehold-
ers as guarantors.
In March, Kutt met with Robertson at dinner to discuss a
possible way to arrange a guaranteed line of credit. That meet-
ing was followed by further discussions with Robertson and
B.V. Elliot, and these in turn resulted in the agreement signed
