Ann: Hazer & AP Ventures Execute Binding Convertible Note Deed, page-13

@slymeat and @Bayhunter are on the ball. I'm surprised no other shareholders have called out what appears to be an unforgivably generous gift to VP.

So VP pay HZR $4m and in return they receive $4m worth of shares on conversion of the con notes. Doesn't matter whether the SP rises or falls, VP still receive $4m worth, so there is zero risk to VP here (assuming HZR stays solvent).

The unforgivably generous gift is the 2.25 million options that VP also receive. Options have two prices associated with them: the cost of the options, and the cost of conversion to shares, but if you read the docs you'll see that the company has been very vague about these costs. Did anybody bother to read schedule 3:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02320238-6A1011657?access_token=83ff96335c2d45a094df02a206a39ff4



Those two statements contradict each other. The first suggests the exercise price is $1 for all 2.25m options, so basically they get the shares for free. But then the 2nd statement suggests the $1 is not the exercise price, it is the cost of the options. So which is it HZR?

If it is true that VP can convert all those options for only $1 total, that means, at the current share price, HZR has gifted VP over $2.25 million dollars. So for a $4m investment, VP received $6.25m in value @$1 share price, and even more as the SP improves. That's effectively a 56% commission @$1 share price.

I'm still interested in investing in this stock, but with these types of shenanigans occurring it makes it real hard to have faith in management's treatment of shareholders.

All IMHO and happy to be proven wrong.