the numbers are probably worse than that, because interest would compound over the term of the loan. Interest is probably calculated monthly, and charged monthly. If AJX capitalised the interest, then the interest outstanding just compounds until maturity.
So the C/N loan balance at maturity will be much higher, hence the number of shares issued by AJX to repay the C/N would be much higher ---> at a price of just 3c.
Thats the penalty for reaching out to a Lender of Last Resort - which is essentially what this is IMHO.
The only escape route is revenue via sales, and then a Cap Raise to repay C/N.
This could be knife-edge stuff until AJX reaches a cashflow breakeven situation.
AJX might need some of its own body armour (with extra cooling) as it works thru 2023.
AJX Price at posting:
1.9¢ Sentiment: None Disclosure: Held
