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clock Created with Sketch. 04/07/17
09:33
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Originally posted by DoctorFouad
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The good news is that they found financing at last moment and didnt go bankrupt (and didnt give up the mine for pennies a la stratmin), the bad news is that as I expected (see my latest posts) its a convertible debenture financing (instead of a simple loan) which means more dilution. Convertible loans (2 million$) end up always converted to shares, by 30 november 2017, (1.5 cents per share) + the 12% annual interest will also be converted to shares (dont know how many years are they gonna calculate the interest, for sure at least 1 year) + 1 option for each 2 shares."Additionally, each note holder shall receive 1 listed option (with an exercise price of 2.5c and expiry date of 31 December 2018) for each 2 shares that they will receive at the conversion date (30 November 2017)." '"Interest is payable at 12% per annum on the Convertible Notes and interest will accrue and also be converted to securities on the conversion date." by 30 november 2017 at 2.07 Billion fully dilute shares ! Or : 1.52 Billion Shares + 546 Million Options !!! Welcome to the Dilution World ! However this is not the all dilution we will get !!! surprise surprise !!! if you read carefully : Quote : "the Notes will convert at the lower of 1.5 cents per share or the price at which the Company concludes a capital raising . " 2.3 Billion fully diluted shares, or 1.67 Billion shares and 621 Million Options !!! At least 22% additional dilution by 30 november 2017 And all this, because of 3-4 months delay in refurbishing the mine.....
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Quote : "the Notes will convert at the lower of 1.5 cents per share or the price at which the Company concludes a capital raising . "
(20min delay)