As mentioned above, this is a known liability whether now or at maturity. Bidders would mark that to market at the bid price or potentially higher if the loan notes agreement is automatically redeemed at the takeover price (let’s say $4.60). Note agreements like these typically might have a change of control clause that requires redemption or buy back of the notes for their outstanding amount. So that’s why I think it’s already factored into the modelling / calculation for the bidders in what they offer. If anything, we’ve saved the bidders at least $0.10 from the VWAP the ARA is calculated on and frozen at, assuming a bid at $4.60 or above.
IFL Price at posting:
$4.03 Sentiment: Buy Disclosure: Held
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