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 at least 60% of the raised funds to real estate acquisitions for long-term and short-term rentals, and approximately 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."
To address shareholder concerns about dilution from the financing and other convertible notes, Invech announced a 'no nonsense dilution awareness' initiative. The majority holder, Woods-Leo, plans to return to treasury up to 42 million shares of his common stock upon conversions and drawdowns. For the S-1 ELOC, which can register up to 30% of outstanding shares (roughly 30 million), management will retire an equal number of shares per drawdown. For example, if a $100,000 drawdown issues 1 million shares at $0.10 each, management will return 1 million shares to treasury.
Similarly, management will retire shares equivalent to conversions from a recent debt note issued for the Paragon Rentals assets, which converts to 10 million common shares, and from a prior management note converting to 2 million shares. These measures aim to prevent net share count increases.
Additionally, Invech plans to amend its Preferred A shares, currently convertible into 300 million common shares. Management intends to remove the conversion preference entirely, instead granting the class an 80% voting right regardless of common and preferred shares outstanding. "300 million shares is crazy to have given the structure of this company," Woods-Leo noted, emphasizing a focus on value over dilution.
Paragon Rentals offers a seller subscription-based platform with 0% commissions for listings and a flat $5 buyer booking fee plus processing costs. Invech also provides FINRA corporate filings, OTC Markets disclosure statements, and SaaS development services. The company has launched a new X account @InvechHoldings and updated its website at invechholdings.com.
