Ann: Extension on Promissory Note Payment, page-6

They don't the $4M to pay off the note.

Good news is as @ALeeG has said ... at least OAS has not put SSN into default and given 30 days grace.

Bad news ... its just 30 days of grace which indicates to me that OAS simply just wants its $4M and no further participation.

I say that because both TB & OAS knew it was coming and effectively that SSN would not have the $4M to repay. Guessing OAS was expecting SSN to have its revised credit facility (CF) completed and could draw on it to repay. TB would have known otherwise. If I were him, I would have approached OAS with debt swap along the lines of either:

(a) convert US$4M debt to convertible note... $4M face value at 12.5% interest, PIK at term. OAS has option to convert at term into 10M shares (so $4.5M becomes 10M shares at effectively US$0.45cps) or be repaid $4.5M in cash

(b) convert US$4M debt into Preferred Shares ... again with 12.5% Qtrly dividend payment and with some form of longer term conversion factor and/or callable by SSN.

Worse news .... and more likely .... a banker should be able to see the above play. No way they would want to negotiate a new CF just so it can be drawn down to repay junior debt. They may have been born at night but certainly not last night! MOB waits for that drama to finish (I mean what can OAS do ... put SSN into default which would have to trigger cross default provision ... how does that help OAS as MOB is in the senior secured position).

With market cap of US$7.25M to options are small and TB has to be careful with the amount of equity he plans to raise to not trigger any control provisions that extinguish the net operating losses on the books.

Small placement of US$2M, swap OAS debt into convertible note, back to MOB with tin shed all shiny and get a better CF done and dusted.

The joy of being a SSN shareholder.... more fun on the sidelines watching the BBQ.