What am I missing?, page-151

The 50m loan (interest is capitalised so lets call it 55m) is due to repaid in August. This leaves two options.

Option 1: The loan is simply repaid with the cash balance that RRP currently has; or

Option 2: The funder who is the major share holder does a capital raising (which dilutes their shareholding) for the sole purpose of repaying the loan, to themselves. (this is what you have suggested).

Hmmmm - which option do you think is the more realistic??

I have ignored the second loan for now.

s.loeb