one thing that has bugged me for quite some time is your views on these notes and, to be perfectly honest I was going to let it go.In light of your posts of late being favourable towards this note issue I will put the question to you.
You have stated on the BCC thread ( 22/5/2012 )that you think the management team and noteholders use very clever words.At the time you were not a holder of BCC so really the dilution effect would not have had an impact on you, i would imagine ?
Moving onto GGP where you are a holder of shares and notes ? you have no issue with the dilutionary effects, I would imagine going by your posting style ??
So you can see where my confusion lies here ? mapd is the dilution factor not a concern for you as it is me ??
Thanks in advance.
"Many posters believe that these secured notes are not convertible....we do not know yet, and they may well be, and if so, could substantially cause dilution..IMHO"
"Don't be fooled.... the notes holders and directors are very clever... with words like 'anticipated', 'allows for flexibility', and 'limits dilution'."
"We shall wait and see the terms of this facility, but i aint holding my breath."
project finance facility - secured notes (mapd) Trade BCC with
Forum: ASX - By Stock (Back | Return to Search Results for 'Poster: "mapd" ')
Code: BCC - BUCCANEER ENERGY LIMITED ( 6.3c | Price Chart | $80.61M | Announcements | Google BCC) Post: 8124954 (Start of thread) Views: 2334
Posted: 22/05/12 08:37 Stock Price (at time of posting): 4.5c Sentiment: None Disclosure: No Stock Held From: 192.160.xxx.xxx
Many posters believe that these secured notes are not convertible....we do not know yet, and they may well be, and if so, could substantially cause dilution..IMHO
Don't be fooled.... the notes holders and directors are very clever... with words like 'anticipated', 'allows for flexibility', and 'limits dilution'.
We shall wait and see the terms of this facility, but i aint holding my breath.
An example from a similar facility from abtech holding NOTE 5 – PRIVATE PLACEMENT
In September 2011, the Company initiated a private placement of Secured Convertible Promissory Notes (the “Secured Notes”) with detachable warrants (the “September Offering”). As of December 31, 2011 the Company had sold $4,000,000 of the Secured Notes. On February 15, 2012, the Company completed the final closing of the September Offering with the sale of an additional $2,600,000 of Secured Notes. The Secured Notes bear interest at a rate of twelve percent (12%) per annum and are due and payable in full on the nine (9) month anniversary of issuance (the “Original Maturity Date”). The Company may extend the maturity date by an additional ninety (90) day period, during which period the interest rate will increase to fifteen percent (15%) per annum on the unpaid principal of the Secured Note. The Company may also extend the maturity date by a second additional 90 day period during which period the interest rate shall increase to eighteen percent (18%) per annum on the unpaid principal of the Secured Note. All interest accrued on the Secured Notes through the Original Maturity Date will be payable by the Company on the Original Maturity Date in cash or in-kind, at the option of the payee. For all periods after the Original Maturity Date, all accrued interest will be payable quarterly in cash by the Company. The Secured Notes may be converted into shares of common stock of the Company at any time prior to the sales for cash by the Company of debt or equity securities generating aggregate gross proceeds of at least $4,000,000 (including the proceeds from any converting Secured Notes) (a “Qualified Financing”) at the conversion rate of $0.70 per share (the “Conversion Price”). However, if the Company at any time while a Secured Note is outstanding, issues any debt or equity securities (with certain exceptions) entitling investors to subscribe for, purchase, or convert such securities into shares of Company common stock at a price per share less than the Conversion Price (the “New Securities Issuance Price”) then the Conversion Price for such outstanding Secured Notes shall be reduced effective concurrently with such issuance to the New Securities Issuance Price.
In the event of a Qualified Financing by the Company each subscriber in the September Offering will have the option to (i) convert their Secured Note into the securities purchased by investors in a Qualified Financing at a twenty percent (20%) discount to the price paid by investors in the Qualified Financing; or (ii) tender their Secured Note to the Company for immediate repayment of principal and accrued and unpaid interest. The Secured Notes may be prepaid in whole or in part without the prior written consent of the payee at any time following not less than ten (10) days prior written notice to the subscriber notifying the subscriber of the Company’s decision to prepay the Secured Notes.
The Secured Notes are secured by all of the Company’s right, title and interest in, to and under all personal property and other assets of the Company (with certain exceptions to allow for potential financing arrangements for accounts receivable and inventory) pursuant to a security agreement entered into by the Company.
