It could work out okay depending what the new MD has planned.
Looks like they are buying (12 months) time for 12.5% ($437k) plus about $35k in options as sweetener.
Regarding payback after 12 months. Maybe they won’t have to. If the shares are trading at more than say $0.035 in a year ppl will be inclined to convert rather than redeem.
i have little confidence in previous management but let’s hope the new guy knows what he is doing. If it all comes off they are in effect raising at twice the current market price.
But all depends on whether they actually have a plan. We shall find out soon enough.
ASR Price at posting:
1.7¢ Sentiment: None Disclosure: Held
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