@Jase99
I love your research here, my man, though I think it is a touch off.
This equity fund will lend IMU AUD $20M.
This is paid back every 6 months either with cash (+10% each 6 month installment for the first 2 years) or shares at the then conversion price for 5 years.
The fund is guaranteed to make their money back plus the $800k over the first two years. At year 3 they can request the entire remaining sum back, which means IMU don't have the remaining $12M.
What it does for shareholders is puts an anchor on the current share price. If they only wanted +10% on cash for each 6 month installment, then this highlights the gain they are looking to make. This will keep the share price low for years to come.
The fund also receives a bonus 526M shares at 4.94c to sell at will if the SP gets above 5c. Even if they end the agreement early they maintain ownership of the warrants. Essentially, they are gifted 526M options to exercise at 4.9c for lending $8M over 2 years and paid $800k for it.
This is a huge dilution event, mate.
(20min delay)