So the Engage Board thought that it was in the best interest of...

So the Engage Board thought that it was in the best interest of EN1 shareholders to extend the related party loans totalling $2.5mill due to repaid on 31 August 2020 for a further year at a "commercial" 5% interest rate.....LOL

I'm rough guess is that the current funding costs of EN1 convertible notes are around 40%.


Looking at the recent capital raise (below) in August 2020, raising $2.1 million cost the company a 8.75% discount and a 6% fee.. so simplistically 14.75% (the cost a equity if calculated correctly will be quite a bit higher than this figure). So the Board thinks it was good business practice to raise additional funds at 14.75%, whilst in the same month lending $2.5mill to related parties at 5%..... OUTRAGEOUS!