I emailed Matt several months ago suggesting the secured notes be split into 2 traunches - a senior A traunch combined w/ a subordinate B traunch. The B traunch would have an equity conversion feature to balance risk reward. I assume that if Al has any $ to put in,he would purchase the majority of the B traunch. For example: assume fair market value of Danbury and Valencia properties at $350 million; the A traunch would be for $250 million and pay 8 - 10%; the B traunch would be for $100 million w/ a 8 - 10% yield and a conversion at $3/share. The A traunch gets a high yield for a very well secured loan. The B traunch is essentially an equity stake since the only way they get paid is if Afrezza is successful. Assuming Al is the majority investor in B traunch, it preserves his ownership and his control of assets under worse case scenario. Basically, this is a way for Al to raise $350 million by putting up $100 million more funds.

What do you think?