Hi Sids,
The Note was hanging like a sword over SDL neck. Pay $5mil by end of Dec and diminish cash reserves when SDL is intent on cash preservation with the current I/O sentiment, OR, Hanlong could've triggered the Note and converted into shares- thereby picking up 5% of the company for $5MIL!! and massive further dilution for us small guys.
10% will equate to 150k payable each quarter. A 100 time better outcome than either of the 2 black scenarios that faced SDL up till now. I'm sure this brings a lot of relief to many and takes away a pretty serious concern had the Note been converted (or paid out for that matter).
Think this is very positive and one might want to start speculating why China is prepared to show leniency in a time when they could have grinded SDL into the ground (sorry for bad pun). Something must be brewing.
Cheers
- Forums
- ASX - By Stock
- SDL
- Ann: Hanlong Convertible Note Extension
Ann: Hanlong Convertible Note Extension, page-6
-
- There are more pages in this discussion • 28 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)