Just to be clear, Wyloo did not “invest” in Hastings. They...

Just to be clear, Wyloo did not “invest” in Hastings. They provided a convertible note (ie short term debt) for the purchase of the shares in Neo. That debt needs to be repaid, or converted to equity. That presents HAS with two issues.

Firstly, with financing and construction delayed and startup currently uncertain, HAS are unlikely to have the cashflow to repay Wyloo when the notes fall due.

Secondly, the shares in NEO are now worth substantially less (-40%) than what HAS paid, so they can’t just sell out of NEO and repay Wyloo.

That potentially means converting the notes to equity, which at current prices and a $100m market cap would result in massive dilution for existing shareholders and Wyloo owning more than half the company.

As shareholders have come to understand the risks of the Wyloo notes, I think it’s one of the factors that’s contributed to the collapse of the HAS share price this year.