Ann: Alexium announces refinancing and capital raise, page-26

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tigerted

193 Posts.

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03/01/24

10:43

Post #: 71705277
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Originally posted by tigerted: ↑

Hi PI

Great post.

I am a bit confused with your CN balance of $4,672,593. Note 1 on page 1 of the announcement shows $7.9M (incl interest as below).

Am I missing something?

I had been doing similar calculations - see screenshot below. These align reasonably with your numbers although there are some differences. For discussion points, I think the difference is immaterial.

What does it mean for Collinton/Wentworth to potentially own a majority of shares?

1. They cannot compulsorily acquire 100% of shares until they get to 90%.
2. If this was their strategy, I believe they could simply not have converted the note and waited until AJX couldn't repay it.
3. Maybe they have more power as a majority shareholder rather than a debt holder (would depend on the security held for the note which I can only assume would be fixed and floating charge over all assets - ie giving them full control anyway).
4. If they exercise strategy in point 3 above the downside is they would have to wait until Dec 25 and then convert at $0.03 instead of the renegotiated $0.015. I am pretty sure the CN would have a clause saying the CN became fully due in any event of default (ie they could exercise their security before creditors).

As per my original post, my thoughts are that they likely had full ability to take control of AJX upon default or in Dec 25 so I can't see why they would any benefit to them in injecting more funds into the business unless they believe it has a reasonable prospect of becoming sustainably profitable.

Expand

I also meant to mention 2 other points:

According to my calculations Collinton & Wentworth shares combined pre cap raise equate to 20.62% - beyond 20% threshold so they must be independent of each other (if my calculations are correct).

I previously stated in my original post that Bob Brookins Dad had sold shares. I believe this is likely however it is not necessarily true. Bob's shares appear to be managed by BNP Paribas - maybe Hermann Brookins transferred his shares to them as well for management purposes?

AJX Price at posting: 1.4¢ Sentiment: Hold Disclosure: Held
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