Potvrzovals

Potvrzovals, also known as confirmationals, are a type of financial instrument used in the capital markets to raise funds for companies. They are typically issued by companies that have already raised funds through an initial public offering (IPO) but need additional capital to finance growth or expansion. Potvrzovals are often used by companies that have experienced significant growth in their stock price since their IPO, making it difficult for them to raise funds through traditional equity offerings.

Potvrzovals are structured as a combination of equity and debt. The company issues new shares to investors, but these shares are backed by a debt instrument, such as a bond or a promissory note. The debt instrument is typically secured by the company's assets or by the new shares issued. This structure allows the company to raise funds without diluting existing shareholders, as the debt instrument can be repaid with the proceeds from the sale of the new shares.

Potvrzovals are subject to regulatory oversight, and the terms and conditions of the offering are typically governed by a prospectus or a similar document. The offering is also subject to market conditions, and the price at which the new shares are sold can be affected by market demand and supply.

Potvrzovals can be an attractive option for companies that need to raise funds but do not want to dilute existing shareholders. However, they can also be risky, as the success of the offering depends on market conditions and the company's ability to repay the debt instrument. Investors should carefully consider the risks and benefits of investing in potvrzovals before making a decision.