The September 30th CliffThis is the big one. If Peninsula can’t...

The September 30th CliffThis is the big one. If Peninsula can’t get shareholder approval by then, Davidson Kempner can call the entire loan immediately. That’s a $2.25M redemption premium on top of the principal - essentially a penalty for failing to execute.
Production Timeline PressureThey’re targeting yellowcake production by end of August. Hydrology is the word! these timelines are slippery . If they miss production targets, no cash flow for the upcoming equity raise, creating a cascade effect.
The whole structure hinges on completing a minimum $30M equity raise. In current market conditions, especially for a suspended stock with operational challenges, this isn’t guaranteed. If the equity raise fails or comes in smaller, the convertible facilities can’t be drawn.
the warrant structure gives Davidson Kempner 2.5% (potentially 5% if administration occurs) at 150% of the equity raise price. Plus conversion rights at the equity raise price. This could be significant dilution, making the equity raise harder to execute.
What Happens If They Can’t Meet Requirements?
The downside scenarios are quite punitive,
Immediate acceleration of all debt if shareholder approval isn’t obtained.
Step-up interest rates if certain milestones are missed —-Make-whole payments if they try to refinance early (first 15 months)
$2.25M redemption premium in various trigger scenarios