According to the initial notice on issue, Metallum retained some...

According to the initial notice on issue, Metallum retained some limited right to repurchase the convertible securities, but this had a time limit of 120 days and Bergen can still convert 30% of remainder on notice of repurchase.

Bergen is also limited to converting no more than $US150,000/month, although seems to be happy converting $US100,000 at a time. The securities mature in November, I think, so they would probably want to convert an on-sell all before then. They have another 3 months worth in hand at this rate, so seems fairly safe for them.

I agree that the disturbing part is that they are looking for additional funding, unless this has the intention of repurchasing remaining notes. Given the new base is likely to be 0.7cps for the next 21m share sell down, any new funding of significance has to be very dilutionary. There is no impetus for on-market buyers, as they can just wait for the final tranche of Bergen's sell-down (0.4cps??).

If they are so close to cash flow positive, then surely they should have good reason to minimise any additional funding until the force-feeding of Bergen shares stops making the share price sink.