A couple of points that should be noted. This loan is to pay out...

A couple of points that should be noted. This loan is to pay out CPS Capital. CPS has CLE's EUR shares as collateral. There is a risk of CPS dumping the EUR shares on the market in one hit to recoup their money. That is not a good thing for EUR or EUR shareholders. This loan averts that risk. CLE needs to cash up the EUR shares but it can be done on demand over a longer period.

The next thing is the date. CLE's woes are due to the delays in the the CRML merger deal. Everything has been done to avoid selling the EUR shares at the current share price. Even during the buyback period when it was 10 cents. CLE could have sold at the time and we would not be having this debate. This loan is but a continuation of the desire to hold off selling the EUR shares until they have re-rated. So the BOD have put this re-rate at before 20 June 2024. In fact the re-rate has to be some time before this to enable CLE to sell down over $2M worth of shares. This may take a month to do so. Thus the company is saying that in less than 90 days (60 day lock up and another month) the EUR share price has risen sufficiently to make this a good deal.

So there you have it, the company has said without saying it, that something significant will happen to boost the buying sentiment well before the middle of June. They have a shared chairman, so without saying it they also know that CLE has something worth sticking their necks out.