Australia's largest stock trading and investment forum Australia's #1 stock forum

STA

Click for more information

0.00%

9.5¢ strandline resources limited

Ann: Existing Bondholders provide additional A$20M Loan Facility, page-7

First 7 Last

Share
Profile

Follow
bigdaddymoney

468 Posts.

37

16/03/24

12:00

Post #: 72919248
Share

Originally posted by xxLiONxx: ↑

Positive news is that
-Bond holders have extended standstill arrangement,
-Provided covenant relief for 12 months and
-Extended further $20m support.
-It can be inferred from this that the operational improvements achieved so far and planned in future will support debt service in future

Negatives being-Issue of dilutive warrants to bond holders
-They have referenced the qty of warrants to the upcoming equity raise: I.e. there will be an equity raise
-Equity raise will have warrants attached as well - apart from above warrants issued to bond holders

In conclusion:- This is not a bad outcome at all. Existing shareholders will be able to salvage some capital. Investors with a high risk appetite may be able to buy into the raise.

Expand

Agree. Bond holders would not have agreed to extend support without a clear demonstration for how STA will be able to service the debt.

STA Price at posting: 9.5¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 16 more messages in this thread...

First 7 Last

Add STA (ASX) to my watchlist