Longmont Potion Castle 15 (2018)

Longmont Potion Castle 15

Track 8: Money Talk

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  • SPEAKER_03: this is money talk whether you're caught up in a struggle for the legal tender or just waste and away in margarita bill you're always welcome right here on money talk your home each and every weekend we do appreciate the company for sure
  • SPEAKER_03: Cornelius is on the line in Sioux Falls, South Dakota.
  • SPEAKER_03: Welcome to Money Talk.
  • SPEAKER_04: Hello. Hello. I love your show.
  • SPEAKER_04: Thank you, sir.
  • SPEAKER_04: Thank you. My credit union here locally offers an 18% earning on a money market if you deposit pesos as opposed to US dollars.
  • SPEAKER_04: So I deposited about so 12 million.
  • SPEAKER_04: pesos approximately. And I went to withdraw some funds back out. And they inadvertently gave me
  • SPEAKER_04: Swiss francs and the amount was about $500 more than what I was withdrawing. So would you
  • SPEAKER_04: reinvest that in Swiss francs or would you just keep on withdrawing and taking that extra
  • SPEAKER_04: amount in that converted currency?
  • SPEAKER_03: All right.
  • SPEAKER_03: I guess this is a little convoluted, isn't it?
  • SPEAKER_03: So you put about, you put about $600,000 into the pesos?
  • SPEAKER_04: Yes.
  • SPEAKER_03: All right. So you put about $600,000 into the pesos, and you thought you owned pesos, and the bank said you own Swiss francs?
  • SPEAKER_04: Yes, when it came back out, and I'm actually getting more out than I wanted, so I could continue to do so with no repercussions.
  • SPEAKER_04: Or I could keep reinvesting it.
  • SPEAKER_04: At that 18 percentile, I'm just not sure which would be the most prudent at this stage.
  • SPEAKER_03: Well, one of the things that's hard to understand is you wanted to invest in Mexican pesos, right?
  • SPEAKER_04: That's what the credit unit is called the Kimosabi credit unit here in Sue Ball.
  • SPEAKER_03: Well, it doesn't matter what the name of the company is.
  • SPEAKER_03: You made an investment in, you made an investment in, you believed, you made.
  • SPEAKER_03: made an investment in Mexican pesos, and all of a sudden you learned that you own Swiss francs.
  • SPEAKER_03: Now, most people would be pretty upset about that.
  • SPEAKER_04: I would have been, too, except I came out ahead in the bargain, you understand?
  • SPEAKER_03: Well, the problem with that is that someone is apparently, how could that happen?
  • SPEAKER_03: If you instruct the bank to invest in Mexican pesos, and then the bank instead invest in Swiss francs,
  • SPEAKER_03: I mean, how could you possibly be comfortable with that?
  • SPEAKER_04: Well, I am a Swiss chancellor.
  • SPEAKER_04: I thought that may have influenced their decision.
  • SPEAKER_04: I'm not entirely certain.
  • SPEAKER_04: I took the proceeds.
  • SPEAKER_04: I'm not going to lie to you, sir.
  • SPEAKER_03: But I just want to...
  • SPEAKER_03: Well, sir, it's your money.
  • SPEAKER_03: It's your money.
  • SPEAKER_03: And I thank you for sharing, but I would have to say that from my point of view,
  • SPEAKER_03: if I made an investment through a company that was in Mexican pesos,
  • SPEAKER_03: and then they paid me off in Swiss francs.
  • SPEAKER_03: I think I'd probably call somebody up at the bank and say,
  • SPEAKER_03: I thought we were invested in Mexican pesos and see what they said,
  • SPEAKER_03: because that would be a fair question on your part.
  • SPEAKER_03: I do appreciate the call.
  • SPEAKER_02: Trent, you're live with Angel and Eric.
  • SPEAKER_02: How are you?
  • SPEAKER_02: Good.
  • SPEAKER_02: How are you doing?
  • SPEAKER_02: Doing all right.
  • SPEAKER_02: What type of startup industry question do you have?
  • SPEAKER_05: Oh, well, is it necessary to put an LVR into your IPO when you?
  • SPEAKER_05: or going before the loan officer at the bank?
  • SPEAKER_00: Did they ask for it?
  • SPEAKER_00: They did.
  • SPEAKER_00: Then it is.
  • SPEAKER_02: Yeah, the basic question and answers has been answered, right?
  • SPEAKER_02: Is it important to do that?
  • SPEAKER_02: For those who are not familiar with the terminology,
  • SPEAKER_02: the LVR is the loan to value ratio,
  • SPEAKER_02: and you're getting ready, it sounds like you're getting ready to launch an IPO?
  • SPEAKER_05: Yes.
  • SPEAKER_02: Yes, that's correct.
  • SPEAKER_02: To go public?
  • SPEAKER_02: Okay.
  • SPEAKER_02: Yes, that's correct.
  • SPEAKER_02: Yeah.
  • SPEAKER_02: When dealing with the IPO, you tend to get involved with the SEC.
  • SPEAKER_02: So you have to play by the rules that are laid out there for you.
  • SPEAKER_05: Does that help?
  • SPEAKER_05: It does.
  • SPEAKER_05: It does.
  • SPEAKER_05: You know, in my position, coming from a place of insolvency and going through all kinds of steps,
  • SPEAKER_05: we institute a drip pricing to keep out of the red.
  • SPEAKER_05: And then we looked at divestiture.
  • SPEAKER_05: We ended up getting with a loan officer because we were
  • SPEAKER_05: We do have a guarantor lined up.
  • SPEAKER_05: Now, he's going to handle some of our repayments on a promissory note.
  • SPEAKER_05: It's easier to forecast, but when you have a balloon payment, I mean, there's only so much bootstrapping.
  • SPEAKER_05: And I can guarantee that the guarantor is looking for liquidity.
  • SPEAKER_00: Right?
  • SPEAKER_00: Have you considered, like, hard money lending instead of just going straight to a bank?
  • SPEAKER_05: We have some bad debts.
  • SPEAKER_05: We also have some intellectual property and some encumbered.
  • SPEAKER_05: assets. Now, the encumbered assets are currently being used as collateral and another loan,
  • SPEAKER_05: and some intangible assets as well, that we've got non-physical assets with no fixed value. So it's
  • SPEAKER_05: sort of hard to assess.
  • SPEAKER_02: Yeah. Yeah. I'm going to put you on hold for just a minute. We're getting some awkward feedback
  • SPEAKER_02: from you and your phone connection. So I'm going to have my producer connect with you and
  • SPEAKER_02: make sure that you're on a landline and calling.
  • SPEAKER_02: I apologize, but the feedback is significantly awkward.
  • SPEAKER_02: We have someone on the line.
  • SPEAKER_02: Ernest, are you with us?
  • SPEAKER_01: When a baby is born to be baptized, they go to the landlords to ask for some money,
  • SPEAKER_01: that child be baptized.
  • SPEAKER_01: Then when they are sick, they go to the landlord, get money for some hospitalization.
  • SPEAKER_01: And then the same thing, when the children are mom,
  • SPEAKER_01: They go to the landlord or something like that.
  • SPEAKER_01: Ernest, are you there?
  • SPEAKER_01: So.
  • SPEAKER_02: Hey, Ernest, I'm going to ask you to call back Haystack Health tomorrow.