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01/04/16
22:33
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Originally posted by BorisYeltzen
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This does not change the situation whether it was cash or share dilution. The facts are InCor got cold feet and pulled the eject button. Let me ask you why would InCor terminate the agreement and take back their $10 million if they had faith in the future of the company?
The only way for InCor to ensure that AVQ didn't touch the remaining $10 million was to get the agreement terminated. In their view the biggest risk was losing $15 million instead of under $5 million. It is that simple - once they decided they no longer wanted to offer the $10 million they had to agree on what to do about the first $5 million knowing that AVQ could use legal means against them for terminating the agreement early (however InCor would argue they no longer have their tier 1 asset as security = legal drama = $$$$).
Hopefully makes more sense.
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I don't think it's the risk. It was more likely the prospecting license was one of main security clauses that triggered termination. That was simple as that. IMO.