Sorry! My calculations didn't cater for the fact the $2.5m loan...

Sorry! My calculations didn't cater for the fact the $2.5m loan was in US currency and of course the financial reports are given in AU$. In effect however, that gives MAY some extra dollars (AU) in the kitty.

I agree with your sentiment as to the 15% interest but, as I wrote, the lender would have held all the cards. What we don't know is how many other financial insties' knocked MAY back.

As for the guarantee, Yes! Purcell becomes top secured creditor with first call on the assets in event of liquidation but only in the amount of any outstanding part of the loan should such an event occur.(which may be the whole amount) But then, shareholders didn't exactly embrace the last CR with full or over subscription, and Purcell had to dip into his pocket to help get iot over the line. I would have preferred MAY coming back to us, I doubt it would have been any different this time around had they done so.

As for the options, Purcell has to pay the A$1.76 to MAY in order to exercise them once vested and at 2.2 cents he will be paying 45.5%. over the current price of 1.2 cents.

I'm not saying its a good deal with the lender, I'm saying it is what it is, and perhaps, beggars can't be choosers. It does give MAY breathing space for the current quarter to get a farm in deal done. If they can, with a wad of cash as a component, I'm sure the loan will be paid out forthwith and MAY will be on a more financially secure footing. Cheers.