IS THE INVESTOR'S INVESTMENT CONSIDERED DEBT?

Good afternoon,

I have a question maybe someone could answer.

Imagine a 2 million search fund company acquisition with the following structure: - 50% bank debt - 50% investors
From my knowledge, this 1 million given by investors is considered as equity in exchange for shares, not as a debt to be repaid in the future to the investors + shares.

Is this correct? Thank you!






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