There's a 15% discount if the notes end up being converted is...

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11/03/20

21:48

Post #: 43436578
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Originally posted by Royal_Viking ↑

Jasmine,

Firstly you do some good financial analysis on other threads.

That said on AVZ, am not sure what you are reading but from AVZ’s announcements this is what I am reading;

“US$1m Convertible Note by 11 March 2020 in order to maintain Yibin Tianyi’s rights under the Subscription Agreement. The Convertible Note will be provided interest free until 31 March 2020*”

INTEREST FREE ! Why ? IMO it’s clear for all to see because Yibin/CATL wants this done / is a sign of good faith from their part in order to retain their original terms.

Now say AVZ can’t repay or convert it then yes there is a 10% rate PER ANNUM to be paid monthly from 30th April (calculated from 31st March) - THATS only if you don’t repay (or deduct it from expected placement proceeds 14.1m) the interest free loan by 31st March (terms screen shot as below).

Also I don’t see anywhere an upfront fee or discount to arrange this interest free convertible loan, so please show me where I am wrong as in reference ?

IMO the 14.1m will get done and if not, for whatever reason, AVZ will IMO repay said INTEREST FREE loan by end of this month.

As for FIRB very clear from many posters that confirm from SHs meeting is delayed due to backlog and recent change of policy.

Let’s see, time will tell.

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There's a 15% discount if the notes end up being converted is what he is correctly implying.

ie: conversion price of 85% of the 15 day VWAP.
No deemed set price
Hence there is basically no floor price.
It's in the best interest for the lender if they convert to have the price as low as possible..
Oh fwiw
And seeing the face value per note is $USD another bonus for lender is if the $AUD goes down big time..

AVZ Price at posting: 6.1¢ Sentiment: None Disclosure: Held
3 Upvote

1 Great analysis

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