I didn't go to the AGM but from the releases this morning it's patently obvious that they are negotiating with the convertible noteholder to convert maybe the two fully drawn tranches totalling $US10mil into shares before the end of June. Main item to be agreed upon would be conversion price - it won't be the current set conversion rate of A12.5c but hopefully it's no lower than A7.5c which would mean issuing them with 190mil shares. It would mean a General Meeting next month to get shareholder approval to change the conversion price. Yes massive dilution coming but little choice especially after the disastrous Hummer #2.
On my calculations the Company would have around $US6.5mil in negative equity(shareholders funds) at 30Jun19 if the above shares weren't issued which of course is an absolute no-no and so needs to be corrected before 30Jun(in US$'000)
Total equity at 31Dec18 +$961
Loss from drilling Hummer #2 -$6250
EBITDAX q/e 31Mar19 -$768
EBITDAX q/e 30Jun19 -$500(est)
Total equity at 30Jun19 -$6557
Shares(190mil) to be issued +$10000
Adjusted Total equity at 30Jun19 +$3443
I believe they have got approval to issue shares to cover interest on the convertible notes so that will be an additional issue that will be done shortly.