Ann: Letter to Shareholders - Upcoming EGM, page-36

So Good_Coin,

this would indicate that you are happy to vote against the resolution - correct? That way, the only way those shares could be issued is with the permission of the shareholders or in the event of one of those triggers occurring.

If we have a look at the terms of the c/n we can see just how reasonable they are:

Firstly, only interest is payable regularly, the principle is payable at the end of the term:



So the company is liable for some US$112,500 per month just in interest. So perhaps we can pay back some capital:



If you decide to pay back (say) US$5M after 2 years, you have already paid 27% interest in simple terms and you get another 4.5% for your (success?) good efforts - in simple terms it's 31.5% after 2 years. Not forgetting, of course that the original loan was instantly docked for 4%, so we now have 35.5%.

I don't see these terms as being all that wonderful....

Now, you could just do a debt for equity swap for the principal amount (i.e. exercise the conversion) as is allowed, and none of that shows against your earnings - you just get a reduction in liabilities for a change in equity.

I don't have a problem with this per se, but I think that the shareholders should be a part of that decision at that time.