Possible Undercapitalization Sample Clauses

Possible Undercapitalization. This Offering is being made by the Borrower on a strictly “best efforts” basis. There is no minimum amount of Total Bridge Loans that must be advanced by the Lenders nor are there any escrow provisions or protection. All funds received from investors will be deposited in the Borrower’s operating account and immediately utilized for working capital purposes. In the event insufficient capital is available through the Private Offering, there can be no assurance that additional capital will be available when needed, and the Borrower may be deemed to be undercapitalized and may be unable to implement or to carry out its business plan. While management believes that it will be successful in raising the capital contemplated by the Private Offering, there can be no assurance thereof. In the event the Borrower is undercapitalized, the risk of failure will, in all probability, be borne primarily by the purchasers of the Lenders;