Ann: Walkabout shareholders provide $5m loan to bridge funding, page-50

What a strange announcement,

WKT had $4.7mil in cash at the 30th of June, with an expected expenditure of $2mil for the September QTR,
The current cash balance would be around $2.7mil including the few options that have been exercised over the past few months.

With $5.9mil worth of options expect to be converted in December one would have to question why WKT needs a short term loan of $5 mil? unless WKT is expecting a $5 mil bill for the banks to complete their DD.

The shareholders and director who approached the company are going to do very well out of this.
Not only do they get paid $175k in interest over the next 3 months and their funds returned to them in 3 months time, but they also receive 5 free 35c options for every $1 they have lent the company,

If WKT doesn't receive the full $5 mil to pay out the bridging loan in December when the 15c options are converted, the members who have lent WKT the $5 mil, will receive shares in WKT at a 10% discount within 10 days.

I would have thought that the WKT management could have called around the T20 option holders to have them exercise their options early, which would have saved the company at least $175k in interest.

BTW @oznt nowhere in the announcement does it say these "bridging options" need to be exercised within 10 days once the loan has been fully approved, would you really exercise options at 35c if they are not in the money? I did notice has been no time period stated for when the 35c options expire. maybe these details will be provided to the market once the notice of AGM is called.

IMO it is unlikely that the banks DD will be completed prior to the bridging options being granted at the end of December,