@Mitchdon .... yes, at this time the AJQ Convertible Notes rank first,,, when the AJQ Convertible Notes are issued they rank second. When they pay the balance on the AJQ Convertible Notes ... the AJQ Convertible Notes will rank first.
I deleted one comment as could have been not allowed...
I don't hold AJQ shares but I do hold the AJQ Secured Amortising Notes.
I don't have all the details on the AJQ Convertible Notes but this seems to be what I see.
- The AJQ Secured Amortising Notes have an interest rate of 8.75% but also require principal to be paid, with final payout in March-2024. - The AJQ Convertible Notes have a higher interest rate of 10% but no principal payment and can be converted at any time at $0.006/share.. pre-consolidation. They have a term of 3 years, so at this time they are either converted or principal repaid in full. - Even though higher interest rate, payments will likely be less due to no principal payments.... so better cashflow for AJQ - AJQ would have struggled to make the principial payment in Mar-2024 on the AJQ Secured Amortising Notes - AJQ are technically in default on the AJQ Secured Amortising Notes at this time, as they never made the last payment due on 29-June and have proposed to noteholders a revised payment schedule. - AJQ have been in breach of the loan terms in the past but have always managed to meet loan payments. This latest breach is more severe, but I believe it is due to the delays in the current capital raising, as they originally proposed an EGM to approve the AJQ Convertible Notes issue on 2 May 2023. - The AJQ Convertible Notes will have security on the assets of AJQ, once the AJQ Secured Amortising Notes are paid back. - Bizzell and DGR are underwriting the AJQ Convertible Notes issue, so could end up with a significant holding. - If all the AJQ Convertible Notes are converted this would add 3.33 Billion new shares .... pre-consolidation ... significant dilution
GLTAH....
AJQ Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held
(20min delay)