Ann: Notice of Demand in respect of Chillagoe Acquisition, page-8

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Wobbellee

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02/04/20

16:39

Post #: 43845356
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Originally posted by garndo: ↑

The ASX release from CSD doesn't make sense - Auctus are suing CSD for $4.325m, which CSD says is the break fee plus interest on the deposit:

Break fee = A$1m
Deposit = A$2m

The deposit was supposed to have been paid on or before 7 Feb 2020 - so how you get A$3.325m interest (A$4.325m less A$1m deposit) on a A$2m deposit in a ~ 2 month period is beyond me. I would guess that CSD are being sued for the deposit + break fee + interest + costs. It would then come down to how the agreement has been worded - with each side being lawyered up.

In the scenario where CSD don't win the case - more intriguing is the fact that can CSD pay? As at 31 Dec CSD had A$0.521m in cash plus an undrawn facility amount of A$8.7m (total facility of A$10.65m less drawn amount of A$1.95m).

So total financing available to CSD as at 31 Dec was A$8.7m in an undrawn facility plus A$0.521m in cash = A$9.221m

CSD put their operations on C&M at the end of this quarter, so that would indicate that their performance during the Q was less than stellar (lost cash) - the question how much cash?

It is possible that should Auctus win - then CSD will have to pay Auctus A$4.325m. You would hope that CSD would have the ability to pay this!

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"....You would hope...."

ROFLMAO

CSD Price at posting: 12.5¢ Sentiment: None Disclosure: Not Held
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Ann: Notice of Demand in respect of Chillagoe Acquisition, page-8

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