Four previous cash loans were made by EUR to TS's CLE, with a total of $2,250,000. They were to be paid back in cash plus interest - but guess what? EUR 'agreed' to be paid back with CLE's next to worthless shares.
We were told about this in an announcement to the ASX on 2nd June 2023.
EUR LOAN FACILITY CONVERSIONCyclone Metals Limited (ASX: CLE) (Cyclone or the Company) previously entered into loan agreements with European Lithium Limited (ASX: EUR) and was advanced funds totaling $2,250,000 (EUR Loans). The Company advises that the parties have agreed that the principal amount of $2,250,000 plus accrued interest will be converted into equity based on a share conversion price of AUD $0.002.
This new loan of EUR's much needed cash is to be repaid on 20 June 2024. Any bets on whether the repayment will be in cash or in a new issue of CLE's next to worthless shares? Currently CLE has no buyers, but thousands of shares for sale at $0.001.
EUR Price at posting:
6.5¢ Sentiment: Hold Disclosure: Held
