@GravityWaves and @ThinkinLoudly, the Acuity comments perplex me and to be honest have always been an irritation to me?
I'm going to go along with your rational that 25m shares were gifted to them for nil consideration i.e. BLK got nothing in return. Where would we see debt from this type of exchange / transaction???
Even if cash exchanged hands between Acuity and BLK wouldn't the accounting entries be (to the extent of $'s given by Acuity - consideration)
Dr Cash at bank Cr Share Capital i.e. Acuity have x number of shares @ x amount per share to the extent of the amount $'s handed over to BLK?
This would also be reflected by an increase in the number of reported shares issued out since that point in time, i'm not sure i've actually seen the 25m increase yet? Maybe one of you lads can studiously look into it. Maybe also validate that you can see the increase of 50m in relation to the Lind portion as well? Oh, wait, Lind haven't actually converted the debt into equity yet?
Is my line of thought wrong re the Acuity item? I would think the only time we would see it reported as debt is if Acuity had given the money over and no shares were given or actually converted, accounting entries would be
Dr Cash at bank Cr Loan to Acuity A/C
This would be inline with the current treatment of the $7.5m handed over by Lind, which hasn't been converted to shares as of yet and has been traced through cash flow disclosures below
@GravityWaves and @ThinkinLoudly please show me a cashflow that shows proceeds from Acuity. If you can find it then I may start to believe BLK have taken this up.
But wait 50m shares were issued pursuant to the Lind funding agreement (refer to item 1 in the 3B attached below).
@ThinkinLoudly and @GravityWaves you both have quoted appendix 3B at times, so I thought I'd have a look into this further again. Below are the screen shots of the pertinent parts with highlights for you to follow:
It's interesting because Item 1 in the App 3B i.e 50m Lind shares also had a Nil Consideration (again for emphasis doesn't this just mean the securities might be issued out in the future, hence it needs to form part of the disclosure in Appendix 3B). Part 2 of the form can't be any clearer lads "Number of *Securities issued or to be issued (if Known) or maximum number which may be issued" ( I suppose I may need some reading glasses).
So on a slight tangent but somewhat inline with the matter raised, I would think we would only see the 50m shares in 1. above actually affect number of shares issued if Lind agree to convert the current debt to equity. This would lead to an accounting entry in BLK's books as follows:
Dr Loan to Lind A/C *extinguishes the loan account as the debt is converted to equity Cr Share Capital
No affect to 'cash at bank' as the cash had already been given $7.5m Note too, I would think some further disclosure to the market would need to occur to notify the actual number of securities issued and at what price per share if Lind convert? Anyone, please correct me if I'm wrong.
As always all, do your own research, not intended to be financial advice. I'm genuinely keen to be challenged on my line of thinking if anyone else has some meaningful input on this particular topic that seems to be raised on occasions? Always keen to learn more and broaden my perspective, however I do like sticking to verifiable facts.
regards,
BLK Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held
