Originally posted by pe981
Please don't concern yourself with my holding disclosure. As I have said elsewhere I have sold majority of shares, however have ended up still holding a small parcel, so technically still a holder. (No doubt if I put non holder, I would get the usual "why does it concern you etcclear.png)
I am pleased that you now agree that it is illogical for the waiving of a fee to be an incentive to draw and your statement -
"So… a strange sequence of events indeed:" is basically what I have been saying for a while. I have never seen a Company issue so many anns which either make no sense or seem to be missing vital details (quite apart from anns which need to be retracted for other reasonsclear.png)
It is often hard to piece together the whole picture.
Your comment about market cap is relevant, however a couple of points need clarifying:-
22/5/18 - Amendment to terms with Arena were ann'd with Tranche 2 split into 2a & 2B. 2A was still to be drawn in May (unchanged) and 2B to be drawn
on or from (??) 25/6/18 - ie - 2B was not due 3 or 4 months after 2A. The minimum 3 to 4 months between the remaining tranches remains unchanged. It is unclear if that 3 or 4 months started after 2A or 2B. The inference was always the remaining tranches continue as is so - fe - tranche 3 due Aug / Sep!!
(Note I have previously asked how you can have a
Minimum of 3 or 4??)
Tranche 2A was apparently received in June and as we now know tranche 2B "was not received by the Company" (note wording)
From what I can see MC of the Company at end June was still above $12m and in fact wouldn't have dropped under that figure until around end August (rough estimates) also around the time they ann'd waiving of termination fee. Unless my maths are incorrect MC would not have been a reason to withhold 2B at end June or July or into August, but perhaps Arena could see the writing on the wall and had started renegotiating whole thing or perhaps just being difficult.
The Company is regularly silent on the finer details and this quarterly is no exception with no comment at all how they were going to meet the expected shortfall - cash balance end June $370k expected outflows - $1,547k with the obvious issues with Arenaclear.png (incl MC now well under threshold)
If the new funding arrangement involves Arena it isn't going to be pretty with an obviously reduced con rate, however falling SP indicates they will no doubt have to take what they can get.......................
I have zero concern about your disclosure. You can do as you wish with your holdings, or non-holdings. You can be as cynical, or non-cynical as you like - it won't influence the financing of NXE. Good luck to you either way.
Waiving the fee is an illogical move for Arena if they were choosing to withdraw the credit line. On the flip side, waiving the fee is still very much an incentive for NXE to feel comfortable drawing down additional funding without exposure to penalty fees for not drawing down all the credit. In basic terms, Tranche 2B would still be available to patch the company over without the need for any further Tranches / penalty fees.
I think it has all been necessitated by the delays in 2A issue / conversion notes so to be honest its a bit of an empty debate. We won't agree on this so no point in us going in circles with it. With regards to the delay, in the 15th August announcement regarding waivers and approvals it's stated that:
"...Tranche 2A notes [were] issued in July 2018, also with an 18-month term."
Regardless of what the plan was in the May 22nd announcement, the notes for 2A were issued in July probably from a May / June draw down (more likely June but who really knows as the reports are all over the place?). There's no way Arena would issue 2B capital in the same month they received the 2A notes (i.e. July). My reading of the May 22nd announcements and subsequent issue dates suggest Arena expects about 2 months between Tranches, but NXE went ahead and stated in their 22nd May announcement that it would be June / July. Classic optimism from
MUS NXE .
As we've both stated, it was the 3rd week in August that market cap dropped under the threshold. Given the apparent delays with receiving 2A and issuing the corresponding notes in July, the time frame just seems too tight for issuing more capital in July or August. It's borderline, but I'm pretty sure everybody at Arena and NXE could see the problem with issuing capital in August and NXE went ahead with the private raising as Arena graciously waived any termination fees. Let's not even speculate how the consolidation might have impacted the Con Note Deed.
The lack of cohesive transparency in this process form NXE is not unexpected but I am pleased with the collective join-the-dots exercise we've completed in this thread. It might otherwise have been an impossible tale.
Yep, fair comment and think a fair few holders are a bit jaded with all the goings on and would agree wholeheartedly!!
