Hi FD20
The equity credit facility is not money that the company will have to pay back, with written notice the company would issue shares to the value of the amount needed, this is a equity credit facility, not credit facility.
This is not a loan that needs to be paid back, it is essentially a placement of shares at the companies discretion.
On 17 May 2019 the company entered into an equity placement facility with Long State Investment Limited (LSI) for $15,000,000. Anson may until 17 May 2022 draw down up to $250,000 at a time ($1,500,000 with the prior written consent of the investor) at a cost of 5% of the drawn down amount at a price equal to the average of 2 daily VWAPs nominated by the investor during the 20 consecutive trading days commencing on the trading day immediately after a placement notice is provided. To date $250,000 has been drawn down. Drawdown is at the discretion of Anson. The facility is secured against 5,000,000 security shares.
Now in regards to the 5 million shares, these shares were issued in May 2019 to secure the facility, just like you would pay a fee for any loan or credit facility.
As us long term holders would know, most of the 5 million shares were sold on market in 2019, most likely have all been sold by now.
So if the share price stays above 7 cents for 20 days, the lowest issue price of shares would be 7 cents minus 5%, if the company choses to issue shares during that time period.
ASN Price at posting:
7.1¢ Sentiment: Buy Disclosure: Held
