re: Ann: Convertible Note To Raise Working Ca... Ok, this is interesting. John Kahlbetzer is committed to keeping the company going and $500k should run the company for the next year. The interest rate on the note is a good price, 7.25% which is close to the new CBA standard variable home loan rate. The money for him is in the convertability at half a cent per share for an extra 100,000,000 shares or roughly 5% expansion of share base (and more than creep provisions).
That could be seen as a sting for us although survival until the project gets moving is more valuable than not diluting! I think I prefer this note to raise working capital because at this stage I have confidence that Kahlbetzer's interests are aligned with small shareholders so better to strengthen his hand than others.
Now we've got a seller today and a buyer. Are both acting on knowledge of this announcement?
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