The notes are issued
One Convertible Note will be issued for every US$1.00 advanced by Obsidian under the Convertible Note Facility and have a face value of US$1.15, which will be convertible into Shares at the conversion price set out in paragraph (e) of Annexure D (Conversion Price). The Conversion Price is subject to a benchmark price of A$0.12 (Benchmark Price), such that if the Conversion Price is less than the Benchmark Price, the Company may elect to satisfy some or all of the Shares to be issued by making a cash payment at a 5% premium to the Conversion Price value of those Shares.
Theres also a fee payable either in shares or in cash of 3% for each transaction they go through......
The conditions of the notes being abled to be obtained by WRM are near endless, and ultimately g/tees the note holders they can cash them in to the market.....
They are 15% up on their investment when ever they sell and also are chargeing 3% for the privilage..
So no matter what price the notes are converted to cash they will always make their 15%, thats why there has to be g/teed minimum volume so they know they can cash out, and WRM know this and one reason the turnover went so high before the VOTING passed was to g/tee one of many conditions to get the notes....
This is why the companies that have been trading for years and end up using Con notes have over a 99% chance of going into administration..
The only winners are normally the con note holders who just cash in there 15% plus fees and the ones taking the wages..
Even if WRM convert notes again(most likely)at 6c the note holders will still make their 15% plus fees because WRM still have to have high turnover(up in price or down doesnt matter)and pass the conditions to get the notes approved g/teeing the note holders of getting their profits....
When the volume stops or WRM cannot fill the many tight conditions the con notes will cease to be available and into admin they go..
WRM Price at posting:
8.8¢ Sentiment: Sell Disclosure: Not Held
