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Ann: Buddy Agrees US$10m Debt Reduction with Vendor Debt Holder, page-55

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McKhenry

5,422 Posts.

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21/10/20

18:56

Post #: 48279774
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Originally posted by Lazarus65: ↑

Depends how you look at it. $20m liability plus 50m oppies to Eastfield & Luminous to be exchanged for $10m term loan, $10m working capital facility and 50m oppies to new party. No net impact on SOI register and a far less restrictive debt liability. Albeit minimal impact on balance sheet.

But the biggie is the unleashed flexibility (actually a loan covenant) to establish new manufacturing lines with new manufacturers. Expecting a 5 fold supply increase in 2021 compared to 2020. Not to mention the de-risking potential with additional manufacturers (potentially geographic/geo-political risk mitigation as well as supplier risk mitigation).

It's long awaited positive news and likely will be perceived by the market as such once the finance deals are executed and new manufacturing capabilities are established.

IMO and DYOR. GLTA.

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Didn't they cancel 50m options from LUMINOUS, they have just reinstated them to a different party.

BUD Price at posting: 6.3¢ Sentiment: Buy Disclosure: Held
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