Yes that's right Malcolm, although the document lists other mechanisms of the arrangement which are noteworthy (refer to the rest of the table from announcement below:
- Assuming the agreement pans out as intended, that is they exercise the call back option, then MMI will pay USD$12,750,000 (minus any royalty payments from now until 31 March 25) to Nebari which will cause the royalty payment to cease. So in essence the interest they incur for this agreement/facility is calculated by (USD12.75M - USD10.2M)/USD10.2M = 25% over the period ~ 13 months
It's a raw deal for MMI regarding the interest rate, but as Simon explained it on the investor call, they did this as a means of circumventing dilution to acquire the cash to cover the maturing of the junior debt facilities. These mature throughout the year.
Ann: Update on Funding Secured to Strengthen Balance Sheet, page-6
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Last
4.7¢ |
Change
0.001(1.09%) |
Mkt cap ! $273.2M | |||
| Open | High | Low | Value | Volume |
| 4.7¢ | 4.7¢ | 4.7¢ | $3.127K | 66.91K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 3765215 | 4.6¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 4.7¢ | 3678470 | 10 |
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| Last trade - 10.11am 28/06/2024 (20 minute delay) ? |
| MMI (ASX) Chart |