Hi @SA1588
The Fund is a very credible group with whom we have had past dealings. The options are unlisted and have an exercise price of $0.10. There are 15million options which will convert into STL shares if exercised. If exercised a further $1.5mil goes into the company coffers and there is very little dilution (circa 2.5%) of the current register. Obviously will only be converted if our SP is as pointed out 13 to 15 cents so I am sure shareholders won't mind the minor dilution after being on a 5+ bagger.
More importantly, the coupon rate on the facility is a single digit so IMHO a very good deal for STL. The net cash flows from the Indue acquisition after interest are >$1mil per annum. Obviously, makes paying those dividends easier.You can probably work out the coupon rate from that if you read our earlier announcements.
I believe the type of deal you are referring to is definitely not one that we have entered into.
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- Ann: Indue Acquisition and Funding Update
Ann: Indue Acquisition and Funding Update, page-13
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