Very helpful and clear. Thank you.

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FiveBob

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24/04/24

14:21

Post #: 73498784
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Originally posted by djm3001: ↑

They get 10 million options upfront on the first drawdown. exercisable at 0.0075. They get a 5% drawdown fee and a 10% flat interest for the 4 months. an excellent earn.

If VRC cant pay it back in 4 months then extension clause is activated. The lender gets another 15 million options exercisable at 0.0075 and the outstanding principle and interest covered with the issue of convertible notes.

These can be converted at the lenders option either at a variable price or a fixed price whatever they choose. If after 12 months VRC can pay it back and the lender hasn't converted any notes then the cash is drop dead due.

the lender has a first ranking charge over all assets of the company so they would be able to appoint a receiver to get their money back by selling what they could.

Massively expensive and extraodinarily risky if nothing eventuates. and based on history NOTHING ever eventuates.

If the share price stayed where is at 0.005 and the lender redeemed the notes at 90% vwap then the company would need to issue 255 million shares to cover the loan which it cant do so would still have to cough up some cash. So a lot of dilution there, and enormous selling pressure as they bailed out to get their money. But if you were the lender you would just wait until the 12 months was up and appoint a receiver and take what you could.in cash.

hail mary loan.

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Very helpful and clear. Thank you.

VRC Price at posting: 0.6¢ Sentiment: Hold Disclosure: Held
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Very helpful and clear. Thank you.

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Very helpful and clear. Thank you.

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