The finance deal announcement regarding the $200million came out in December 2021. It wasn't until July 2022 that an announcement was released with a correction that made a monumental difference to the actual terms of the agreement that was made.
I've copied the following from the July 2022 announcement:
"Hawsons Iron Ltd (ASX: HIO) advises that on the 22nd December 2021 the Company announced that“Hawsons secures A$200 Million equity funding package”. Within this release it mentions that “Theissue price of the capital call Shares will be 90% of the higher of the average VWAP of Shares in the 30-trading day period prior to the issue of the put option notice by HIO (subject to any applicableadjustments) and the minimum acceptable price (MAP) notified to LDA Capital by the Company uponexercise of the put option.”
The use of the words “prior to” in the above statement is incorrect. The pricing period starts on andfrom the first trading day ‘after’ the day on which LDA Capital receives the applicable Capital Callnotice and the corresponding Collateral Shares have been issued. The announcement on the 12th ofJuly 2022 “Call Notice – LDA Capital” is accurate in its description."
I won't spell out what that means in terms of damage to share price when calling on the funding but those couple of words make a drastic difference.
As for Tran, I don't know him and I can't speak for his motives. However, I find it unusual that he sometimes gets referenced in this forum as if he's partly to blame for what has happened to Hawsons in the last couple of years.
It seems you are doing your own research and forming your own opinions regarding the opportunities out there anyway, which is what we all should be doing.
HIO Price at posting:
2.0¢ Sentiment: None Disclosure: Held
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