Immediate capital infusion for the client company through InternetFundManager.com PIPEs

Market conditions have made it difficult for many companies - even those with solid business models - to raise capital. We are currently offering financing in the form of PIPEs, or Private Investments in Public Equities. PIPE financing is akin to a private placement of a convertible bond (or debenture). The expected time-to-conversion of the convertibles is 3 months and the conversion is approximately as follows: (Number of shares to be issued upon conversion) = (Face Value of Bond)/(Conversion Price), where the conversion price is either 120% of the closing bid at the bond-issuance-date or 80% of the closing bid at the conversion-date. The dilution effects of this transaction are described below. PIPEs are funded by accredited investors.

The client company must meet the following criteria for this type of financing transaction:

- Average daily trading volume (in Dollars) over $30,000
- Low bankruptcy risk upon financing
- Future availability of registered shares of common stock corresponding to the convertibles

InternetFundManager.com PIPE financing offers the following advantages over straight equity issuance:

- Rather than waiting for the SEC to approve a registration statement, which can be quite a lengthy process for a stock offering, the client company raises capital within a few weeks. The convertible bond can be issued to investors almost instantly without the need of SEC registration. Speed of access to capital is a critical advantage of PIPE transactions.

- The opportunity to raise capital with a lower dilution effect than that associated with a straight equity issuance is very possible, especially if the client company has bright future prospects upon financing (See the scenarios attached below). Furthermore, since the expected time-to-conversion is only 3 months, PIPE financing will not affect Long-Term Debt.

PIPE transactions can have the following effects on shares outstanding

Scenario A: If Share Price Increases During the Life of the Convertible Bond, e.g. from $1 to $1.50

Face Value of Bond (Amount of Capital Raised): $1 million
Closing Date Price (Stock Price when the client company and InternetFundManager.com Sign Definitive Documents): $1
Conversion Date Price (Stock Price when Bonds are Converted): $1.50
Number of New Shares to be Issued: 0.83 million

Note: To raise $1 million in a straight equity offering would have required the issuance of 1million shares. Therefore, PIPEs can offer funds with a lower dilution effect.

Scenario B: If Share Price Decreases During the Life of the Convertible Bond, e.g. from $1 to $0.75

Face Value of Bond: $1 million
Closing Date Price: $1
Conversion Date Price: $0.75
Number of New Shares to be Issued: $1.6 million

Note: Although an increase in share price cannot be guaranteed, the market may reward a client company for its speed of access to and acquisition of additional funds.

The following costs are incurred in InternetFundManager.com PIPE transactions:

- 10% of monies raised.

- 50,000 warrants with an exercise price of 200% of current market share price.

- A maximum of $20,000 in legal fees, payable to an independent escrow agent.

The fees listed above are negotiable, and reasonable considering the higher cost of capital of other financing options.

The maximum amount of capital that we can raise via PIPEs:

- An upfront amount of up to 10% of the client company´s market capitalization followed by a 30-month equity line for a substantially higher amount.

We work with our network of investment banks in raising capital through PIPEs.