Invech Holdings, Inc. (OTC PINK: IVHI) has signed a $10 million USD S-1 ELOC financing agreement, as disclosed in an SEC filing. The company plans to allocate 60% of the raised funds to real estate investments for long-term and short-term rentals, and 10% to the growth of its new platform, Paragon Rentals. CEO Alexander M. Woods-Leo stated, "This financing agreement is our long term strategy to growing our company."
In a move to address shareholder concerns about dilution, Invech announced a "no nonsense dilution awareness" initiative. The majority owner, Woods-Leo, plans to match returns to treasury for shares issued under the ELOC and convertible notes. For each drawdown from the ELOC, which can register up to 30% of outstanding shares (roughly 30 million shares), the majority owner will retire an equivalent number of his own shares. Similarly, for the recent debt note related to Paragon Rentals assets, which converts to 10 million shares, management will retire shares upon conversion. Additionally, a prior management note converting to 2 million shares will see the same treatment. In total, Woods-Leo plans to dedicate up to 42 million shares of his common stock to treasury to prevent unnecessary dilution.
The company also plans to amend the preferred A share designation. Currently, 300,000 Preferred A shares give management 300 million common shares upon conversion. Management seeks to remove the conversion preference entirely, instead equating the class to 80% voting power regardless of common shares outstanding. "We are planning to remove the conversion preference entirely," the company stated. "This should give assurance to shareholders we are striving for value over insanity."
Paragon Rentals, a seller subscription-based platform, allows sellers to list with 0% commissions, while buyers pay a flat $5 per booking plus fees. Invech Holdings also provides FINRA corporate filings, drafting services, and OTC Markets disclosure statements, and develops SaaS platforms. The company has launched a new X account (@InvechHoldings) and updated its website at invechholdings.com.
