We further borrowed 20 mil using the financial credibility of Danny’s company
$20mill that will be between 75-100% fully drawn at completion of the acquisition, for the purpose of helping pay Danny the $50mill cash component for his company. Every loan needs security. The security for this loan would be the $12mill property and I presume unsold stock. The risk is lack of performance in NS and the bank calling in the loan (unless of course other division products start producing significant revenues).
I personally don't understand the loan part. Should have paid Danny $20mill less (or made that incentive based as well). Maybe they tried. Maybe Danny could have paid back the $16mil he personally borrowed.
(20min delay)