Yep, fellas, I believe that you blokes have hit the target.
Based on what we have been told, this is how I see the current situation.
NRZ is free of EECP on the 19 April 2024.
EECP can pick up a further $951,000 worth of shares already paid for, if my memory is correct.
Now to the 5B. This is very useful document, but I don't fully trust it for accuracy. Please correct me if I am wrong but my understanding is that Appendix 5B, while it should be formulated with the greatest care and accuracy, it is not required by law to be audited. This leaves room for maybe unintended errors.
I am not convinced that we have been given the full extent of the current Agreement with EECP. Changes have been made along the way.
Now to the
Financing facilities.
This has always been a mystery to me. There is something we are not being told. My logic says that an Unused financing facility, that is being used as evidence for compliance with Items 8.5 to 8.7, must be locked in solidly by the main Agreement and available on call by NRZ.
This is contrary to 5B (see above) which seems to indicate that further agreement by the investor is required.
If you take this into account along with the terms of original Agreements it would seem that EECP is under no obligation to take up the option. In this case it should not be admissible as unused financing facility for the purposes of 5B
But if you follow the earlier published Agreements and/or 5B, it would appear that under the current circumstances, EECP could reject the option at any time.
This doesn't sit well with me.
You might also notice that NRZ has narrowly avoided calling on the Unused facility for some time. They limp from quarter to quarter being left with a few hundred thousand dollars cash.
See above. Notice how they used Mr. Wangs million dollars before being ratified at a later quarter, presumably to avoid accessing the Unused finance facilities. While this is all above board, shareholders could have scotched it at the general meeting, causing NRZ severe embarrassment. Cash available only $348,000. Could have been minus approx. $700K.
Without assuming the Unused finance facility as being immediately available for use in the next two plus quarters, they would have been insolvent. They have been on a financial knife edge for months, IMO.
If by chance, EECP can walk away from this (optional) financing facility, NRZ is in real financial stress. I hope that they have not been pulling the wool over our eyes, inadvertently or not, but the amendment proposed must be serious enough to call a TH.
If the TH is about finance, any shareholder or wannarbe who is concerned about level of NRZ's financial health, might be quite irate if something adverse is published.
I hope that it has nothing to do with finance, but as another poster (PP, I think) said something along the lines of, 5B is all about cash flow. If JP has to mothball the project while waiting for Stage 1 approval, how long will 847K (no $5 mil additional option) last after he starts paying out the workers and other secured creditors.
I have rambled on a bit. I hope you get my drift. Bear in mind that this is a pessimistic view, and maybe using flawed logic. I hope it will be good news, but I think that all SHs have at the moment, is hope.
J L.
(20min delay)