Ann: NRZ secures further funding against R&D Advance Finding, page-7

There is something weird going on here. The BOD must be expecting something big to happen before November 2023. Your theory appears sound, but I am not sure that it is applicable here, "unless they also took further security... ". I have assumed that the lender is an unsecured creditor.

From the announcement.

"The key terms of the loan are that it expires in November 2023 or at the date of the repayment whichever is earlier, the facility has an establishment fee of $500, an Annual Interest Rate of 15.0% calculated monthly, and funds will be repaid from the refund."

NRZ have secured a loan against something (tax rebate) that they don't have, and intend to repay the loan before it (tax rebate) is received. The tax rebate probably won't be available until March 2024. The repayment will have to come from elsewhere. IMO.

I think that the Lender has taken a calculated risk. If NRZ were to go belly up before repayment occurs, the Lender would have to take its turn as an unsecured creditor in the distribution of asset sales which might not fully cover all creditors.

What do you reckon?