FORTUNE — What really happened at LivingSocial?
Yesterday morning, news leaked that the company had raised $110 million in new financing. Seemed to be a long-awaited hallelujah moment for the daily deal company, particularly after Amazon.com (AMZN) significantly wrote down its LivingSocial investment in recent quarterly earning reports.
But the storm clouds came quickly, when a research group called PrivCo claimed that the financing actually was convertible debt that wiped out the value of founder and employee liquidity and included a whole rash of onerous terms. PrivCo also claimed that the round was “emergency” round of funding that staved off imminent bankruptcy.
Multiple investor sources took issue with the PrivCo report during background conversations earlier this morning, and now Fortune has obtained a memo that LivingSocial CEO Tim O’Shaughnessy just issued to employees. Here it is, in its entirety: