ASX will ping this announcement for sure. No mention of the...

ASX will ping this announcement for sure. No mention of the actual interest rate and the royalty is very vague.

My quick take is these are the bottom feeder terms you get offered when you’re on the verge of bankruptcy. Yes, alarmist comments but the business is still in cash burn, can’t raise enough equity and can only raise this small debt package to hopefully get to a stage where revenue > expenses (and I’m not even considering capex yet!)

As for the vague announcement. It would seem there is an interest rate - which we don’t know PLUS it reads like there is also a 12.5% royalty for perpetuity for the company. Open to other views on how to make sense of it or it really is that bad that they need to be vague.

Do the numbers on what the royalty could look like for a $900k loan and you’ll be wanting to invest in the Glennon Small Cap fund!! Bloody outrageous, but then again that’s what you get when there are limited opportunities. Oh and Glennon now pretty much has control without a premium as they now have the chair. Well played sir.