I've assumed, due to the context of the announcement dated 24/9/16, that is the payment required to cash settle the warrants, and avoid the dilution of shareholders. It is up to IMDEX as to whether they cash settle them, or allow dilution to occur, but obviously IMD need to find the cash, but at present have it on the balance sheet.
From the ann
"The New Facility will attract interest at 10.75% (8% cash, 2.75% PIK) and will be on more flexible terms than Imdex’s current facilities. Sankaty will be issued warrants equivalent to 14.9% of Imdex’s current issued capital (Warrants).
2
These Warrants will be non-exercisable for a period of 12 months and may be settled by cash or by physical settlement at Imdex’s option. The Warrants contain various anti-dilution protections.
Completion of the debt trade between Westpac, HSBC and Sankaty is scheduled to occur prior to 30 September 2015."
IMD have cash of $13m, so will most likely be able to cash settle them.
However on another reading, that is not 100% clear IMO, would be nice to see the contract.
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