It comes down to whether you believe they/Hartree ultimately have good intentions. If they do, why would they charge 15% interest? Does this extortionate rate indicate they think their money is safe? No, 15% means they think it is very high risk. I've worked in a company that paid these sorts of rates in the last 18 months prior to going into VA. In the wash up it was the interest on the debt that killed the company - otherwise they were profitable enough. So Capital injection is what is needed NOT a high interest loan. With the warrants they have a two way bet; they can't lose. Yes, Hartree has this lock stock and barrel. At least putting them through the VA process will stuff up their supply, cost them money and delay, and make them look like the greedy buggers they appear to be.
Lamb says the plant is now at nameplate volume but the grade issue is now the problem and we aren't sure if the loan (at 15%!!!) is enough to get us to the end game. We may have access to another 10M, but on what terms?
I am sorry you have lost a significant amount of capital. I did too and it hurts. But hope is not a good investment strategy. Revenge is not a Christian value I know but in this case I'm willing to so that the likes of Lamb et al learn a lesson.
MYL Price at posting:
70.0¢ Sentiment: Sell Disclosure: Held
