CID Holdco will issue roughly 10.8M shares that equal about 67% of post-close stock, which greatly dilutes current shareholders; the note gives $500,000 cash but allows conversion cuts on default.
The planned Envoy acquisition hands new owners about two thirds of CID Holdco after closing, which sharply reduces value for current shareholders. The $500,000 note gives immediate cash but contains default terms that could allow extremely cheap conversion, so the deal weakens CID Holdco's position.
Blink's $12.5M note in Envoy will convert into equity and result in Series C Preferred in CID Holdco, but the terms and value to Blink are unclear from this filing.
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