# SAFE opinion - SQUEEZE CASH LTD.

## 1. SAFEs - are not common stock.
With them you get the SHARES once a certain event occures (may not occur too.). Example for such events: an additional round of financing or the sale of the company.

If they dont occur - you **lose some or all of the money.**

**In this case**: ". If there is an Equity Financing before the expiration or termination of this instrument, the Company will automatically issue to the Investor a number of shares " - **meaning that there may not be such event in which case they would have to return the investment and you dont get shares as according to the rules in 3. (below)**

### 2. Understand what triggers the conversion of the SAFE.
The SEC notes that the SAFE conversion may be triggered by a number of different scenarios that may or may not occur in the future for the company. For example, while one SAFE may be triggered if the company is **acquired by or merged with another company**, another may have as its trigger an **initial public offering of securities by the company.**

In our case: **Equity Financing**

### 3. Dissolution Event - What happens if the company dissoves?

"If there is a Dissolution Event before this instrument expires or terminates, the Company will pay an amount equal to the Purchase Amount, due and payable to the Investor immediately prior to, or concurrent with, the consummation of the Dissolution Event." - This is good, tho it doesnt point to the term of which they should be distrubted. It says that if the company collapses you get your money back, **BUT** - "if the assets are inssuficient to pay all the Investors for their investments, "then the entire assets of the Company legally available for distribution will be distributed with equal priority and pro rata" - **meaning that if that happens you wont get the full amount back but all investors will get equally less based on the amount they payed - ex: I payed 100, but now get 90, you payed 1000 but now get 900**