A true junk bond with a 12% interest rate, and why not, this...

A true junk bond with a 12% interest rate, and why not, this business has never been able to serve its cost of capital so what does it matter if its paying a debt rate less kind than a loan shark would offer.

The noteholder also gets the option of choosing the face value to be repaid rather than converting into BEE shares, which lets face it, will happen.

When your at the stage where financing requires a secured 12% interest rate, plus giving the option to convert notes into shares at the current share price, therefore giving the noteholder every advantage by setting no hurdle rate for any upside development in BEE, then surely this is the last roll of the dice for BEE. These conditions are criminal to existing shareholders, but then what choice do they have.