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Ann: 31.5% Revenue Growth H1 2020 Financials Commentary, page-44

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Fatman8

6,849 Posts.

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01/09/20

11:38

Post #: 46983754
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Originally posted by M-Air-J: ↑

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!

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Is this the 3rd Or 4th time this has happened??

What I want to know if EN1 went tits up do theyhave to repay this loan.

EN1 Price at posting: 0.6¢ Sentiment: None Disclosure: Not Held
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