Synectic Ventures I, LLC v. EVI Corp.

Plaintiffs — Synectic Ventures I, LLC, Synectic Ventures II, LLC, and Synectic Ventures III, LLC — entered into a loan agreement regarding money that they had loaned to defendant EVI Corporation. The loan agreement provided that the loan, which was secured by a security interest in essentially all of defendant’s property, would be converted to equity ownership in defendant, if defendant obtained additional financing by a certain date. Shortly before that deadline, the managing member of plaintiffs — who was also chairman of the board and treasurer of defendant and financially interested in…