Invech Holdings, Inc. has entered into a $10 million financing agreement through an S-1 ELOC arrangement, with CEO Alexander M. Woods-Leo outlining a strategic allocation that prioritizes real estate investments and platform development while addressing shareholder dilution concerns. The company plans to dedicate 60% of the raised funds to acquiring properties for long-term and short-term rentals, while approximately 10% will support the growth of its new platform at https://www.paragonrentals.ai.
The financing arrangement comes with what management calls a "no nonsense dilution awareness" initiative designed to protect shareholder value. Management plans to register up to 30 million shares through the S-1 ELOC, representing roughly 30% of outstanding shares. For each drawdown from the financing facility, the majority owner will retire an equal number of shares from his personal holdings to offset dilution. This commitment extends to shares issued through convertible debt instruments, including a note converting to 10 million common shares related to the Paragon Rentals acquisition and another 2 million shares from prior management debt arrangements.
In total, Woods-Leo plans to dedicate up to 42 million shares of his common stock to returning to treasury upon conversions and drawdowns. "We are in this for long term growth," stated Woods-Leo, emphasizing management's focus on shareholder sentiment. The company has also announced plans to modify its preferred share structure, removing conversion preferences that would have allowed management to convert 300,000 Preferred A shares into 300 million common shares. Instead, management seeks to establish the preferred shares primarily as voting instruments with 80% voting power regardless of other share issuances.
The company's strategic direction includes significant real estate investment alongside continued development of its software platforms. Paragon Rentals operates as a subscription-based platform allowing sellers to list properties without commissions, while buyers pay a flat $5 fee plus processing costs per booking. Invech Holdings maintains its consulting services for FINRA corporate filings, OTC Markets disclosures, and public company compliance while developing its own SaaS platforms and investing in others.
Company updates and filings will be shared through its new X account at https://x.com/InvechHoldings and through its updated corporate website at https://www.invechholdings.com. The financing details and use of funds schedule will be formally disclosed when the company files its S-1 registration statement with the Securities and Exchange Commission, accessible through https://www.sec.gov/ix?doc=/Archives/edgar/data/1009919/000168316826001511/invech_8k.htm.
