Ann: Investor Presentation, page-27

Based on their 30 June 2017 borrowings of $39.8m, the overall interest rate for the year ahead is around 13.1% per annum (before the Assetsecure interest rate reduction, it would have been 13.9%). Cutting this down to 6.5% per annum (or even 6.9%) is a stretch, even over the long term. I think 8.0 to 8.5% is doable over the medium term (3 years out). The reason why I don't think this is doable over the short term (12 to 24 months) is they don't have the equity (tangible) or the track record (cash flow) that a lender would expect. Also some lenders don't want to lend for litigation funding, as this is both more volatile and risky compared with disbursement funding. I buy the argument from Kapp that disbursement funding would be relatively low risk, compared to mortgages and personal loans. But the fact that the best they have been able to do (outside of their vendor loan) is an 11.5% convertible bond, which effectively gives bondholder a free option at 30 cents, suggests they haven't found lenders willing to play; interestingly both the Chair and CFO/COO each hold 500 bonds, suggesting they prefer to guaranteed interest rather than equity they're getting for free. The irony is by transferring gross profits to employee benefits, there isn't much left on the balance sheet (or to shareholders) to make this appear low risk to potential lenders.