Related-party conflict disclosed — Affiliate debt refinancing from note proceeds
HighA material use of investor note proceeds is earmarked to refinance existing debt of the sponsor's affiliate companies (TLH-40, TLH-46, TLH-82), creating a direct related-party conflict of interest between noteholder interests and sponsor affiliate interests.
“REFINANCE DEBT OF RELATED ENTITIES OR AFFILIATES ... $12,000,000 [at 100% raise] ... NOTE: WE WILL REFINANCE EXISTING DEBT OF OUR AFFILIATES”