Chapter 11 - THE EQUITY WAS NOT AUTOMATIC
The document did not hand Vanessa 4.5% instantly.
It created a purchase right.
Vanessa could buy the shares at a pre-agreed strike price.
Current value of 4.5% of Northline:
roughly $1.9 million.
Strike price:
$420,000.
Potential upside:
about $1.5 million.
Large.
But she also had to establish:
trigger,
unpaid qualifying obligation,
and enforceability.
The remaining debt became central.
Ryan said the $86,000 had been forgiven.
Vanessa said it was deferred.
Emails supported Vanessa more.
RYAN:
I’ll settle the remainder after Series B.
VANESSA:
Fine. But equity protection stays until then.
Ryan:
Okay.
Series B happened eighteen months later.
Ryan never paid.
Vanessa reminded him.
He ignored two emails.
That was bad.
Then she stopped pursuing because her mother became ill.
Ryan interpreted silence as forgiveness.
May you like
Vanessa interpreted silence as delay.
Another relationship destroyed by assumptions no one documented clearly.
