The Technology Licence Investing is a mechanism by which
technology may be made available to select high-growth potential companies, effectively
availing the licensees, technology that is needed to enable realizing the growth potential
of the licensee in exchange for shares in the licensee legal entity. Enhance
Knowledge by virtue of the authorization it is granted, sometimes negotiates such technology licence investing towards the funding of a licensee-company in an effort to
enable the licensee start operating as soon as it is practicable.
In general, the shares offered in exchange for the licence
investing may be Convertible Callable Series Preferred
Shares that collectively is specifically secured by the value of the Technology Licence
evaluated as a percentage of the revenue based on the Income Statement of
the Prospective Financial Statement over the term of the Technology Licence
Agreement which is usually about 15 yrs - 17 yrs, subject to adjustment to
reflect reality of annual realized revenue. The offer of secured equity form is made with the aim of
providing no-risk securement of the investment for the technology licensor
for the attendant advantages.
However, there is always the preferential option of the
licence-investor willing to take the venture stage investment-risk, to
opt for the equity offering to be all in Common
Stocks from the moment of licence investment.