Food for thought? No money in the bank, no more assets to sell or loan against.
AGO now $2.38, was mentioned in the half yearly (see below) that 50% of the margin call facility loan is repayable if the value of the pledged shares fall below $2.40.
Most likely HNR will go into a trading halt, whilst this mess is resolved. Then dilution dilution at a significant discount the order of the day, everyone is a loser.
No idea, why SCR shareholders excepted this takeover. A least HNR shareholders had an excuse - THAY HAD NO SAY.
Ill conceived and conflicted from day one!!! Board should resign.
----------------------------------------------------------- Extract from HNR half yearly report, page 16.
"A wholly owned subsidiary, HR Equities Pty Ltd, has opened a margin lending facility which is secured by 20% of the underlying market value of shares pledged to the lender as security for the loan. At 31 December 2011 the number of shares pledged as security is 3,730,000 Atlas Iron Limited (ASX: AGO) shares. Interest is charged at a rate of 8.74% per annum and 50% of the loan will be repayable should the value of the pledged shares fall below a pre-determined price per share of $2.40 and the full loan will be repayable should the price fall below $1.50 per share. Otherwise there is no fixed repayment date for the loan."
SCR Price at posting:
22.0¢ Sentiment: None Disclosure: Not Held
