https://hotcopper.com.au/attachments/2020-07-27-09-19-03-png.2333453/ Shows exactly the point that the 'note' is backed by the value of the project.
Yes C$1,000,000 must be paid on the note maturing. The remaining C$4m converted into 108m shares at 3.7cents/share would equate to the total outstanding.
Yet it also state's that the 'note' holder was originally prepared to take 12+ million shares of DLI @ $0.20 before LPD took over said company and it's debits. They saw another opportunity and saw better dynamics as to the value of the new deal. So they are willing to modify and adapt to changing circumstances regarding value of deals as past actions are an indication of future actions.
The note holder saw the value in LPD and clearly states in the Stock Update section of the DLI case study, that "Opportunity deploy additional capital: Help finance the development of a lithium processing facility and assist financing acquisitions in the battery metals space" They saw the value in LPD's proprietary technologies but also could "Help finance the development of a lithium processing facility" that sounds like the "Note Holder" is forward thinking concerning the Lithium space and it's research into LPD and it's proprietary technologies. Smart forward thinking IMO, not jaded nor unapproachable concerning changing circumstances. Almost fluid in their approach to the changing landscape of the lithium industry, IMO they can see true value in the lithium space and more to the point, value in LPD.
As suggested in previous posts I have read. Let's go down the rabbit hole that the 'note' holder wants cash instead of the shares. As said LPD does have cash in reserves to pay the required C$1m come the mature date, yet doesn't have enough in the kitty to stump up the rest. Yet it is clearly outlined in the DFS that a contingency of 13% is factored into the P1P funding package. That will be split 30/70 between Namibia and Abu Dhabi for costs associated with those sectors, let's not get side tracked as to how much money will be set aside for the running of the business while P1P is getting build. I do digress let us just focus on the metrics of the case in point, of trying to get cash out of a company that hasn't got enough to service the 108m @ 3.7c. So how does the "note holder " get their funds back. Do they re-negotiate with a new end date, as they have been smart in the past concerning LPD's takeover of DLI and will be paid C$1m as part payment of the amount owed or do they change course from their suggestion of: Help finance the development of a lithium processing facility and assist financing acquisitions in the battery metals space ???
So what's the value of the project ??
Well according to the: Definitive Feasibility Study (DFS) reveals attractive Phase 1 Project (P1P) economics, within 12 months of acquiring the Karibib assets, which include a 31% Internal Rate of Return and NPV8% of US$221 million (A$340 million)
With LPD looking at Walvis Bay as possible home for P2P, as @Bayhunter has referred to in his/her post, shows the intent of why LPD would suggest they could choose Walvis Bay for the P2P. They would choose the location to be close to the source of the raw material. A new deposit or extensions to the existing ore body, big enough to feed a P2P ?
To suggest that the "Note Holder" would want cash instead of shares come the 7th of December is speculative at best, not to be confused with this company that has put together multimillion $ deals under the title "Speculative Stock". The suggestion of cash instead of shares is just plan, even dull, speculation. IMHO a made up story by a past shareholder that has a changing sentiment that suits their current position. Yet will change the view once the tide turns.
IMHO we are on track in getting the funding needed for P1P being built and only time will tell when the funding comes through. As for the "note holder" I believe a new timeline may be entered into if the SP isn't at 3.7c come maturation of the contract. LPD can put together multimillion $ deals from three different continents, has registered companies on 4 continents, has patented technologies the world over. I sure the note holder and LPD will come to a new arrangement regarding the timeline if needed.
Everyone must make their own decisions regarding investing and it pays to do your own research on your investing.
The points have been noted and investors will decide for themselves as to how much value they put into the pro's and con's of buying holding and or of selling. I'm biased about my position of LPD, that's plan to see, but my research is sound IMHO
Best of luck everyone in your investing,
Remember to DYOR.
LT-B1
LPD Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
(20min delay)