Where we at?, page-254

tananmirod. for sure, debt funding a company that is pre rev and whose only asset is ip / licensing agreements / a few patents / bene marketing agreement is not easy or clear cut. let's start there.

debt investors aren't looking for equity like returns. they want their money back plus a 'fixed' return. they want certainty. the more certain the better the rate they lend at. we are for sure uncertain currently.

there are however companies that lend against tax rebates from the ato. we have received ours like clockwork every year. I believe, given (as denial said) our spending was higher recently but will fall in the future, we are due a bigger tax rebate than usual, we could get this early by selling it to a receivables type company for a fee. ie we are due 10 and pay 500k-1m
to get it early.

that however isn't what u we're asking. i see 3 potential options.

1- look at opthea. Carlyle, a USA private credit fund, lent 80m to opthea. In return opthea gets a slice of future revenue. quite a bit. ie it costs opthea a lot but beggars can't be choosers

if we can pull this off we are golden.

2- convertible debt. this is bond (ie like a loan) that has a reasonable rate but in return has an equity option imbedded. so for example I lend par 50m at 8-10% for 3 years and the right to convert their debt into equity if the shares hit say $1, however the price converts at a small premium to the price at the time the terms are struck. so if shares don't get to $1 par just pays 8% pa for 3y and pays the 50 back. if shares hit $1 then the 50m converts into equity but at the price of of say 40-60c (as a theoretical example).


3- a standard loan but with a nosebleed level of say 20% for 1y

there are no doubt a bunch of other options and also derivations of the options above.

for me it's a close run thing but I am personally wagering that once / if fda gives us 2x2 and good protocols etc etc then the smart money will see we are a good chance of getting registered and so 'even though' we are pre revenue with no tangible assets, we are worth a punt and will lend us the money.

I see no chance of getting debt funding until we get regulatory certainty. why would any lender commit to that.. its only us shareholders

my views etc etc etc