Just thought I'd add my 2 euro's worth to even up the debate a little. Please keep in mind I'm a shareholder too and would like nothing more than success so that I can share in the riches.
Firstly, the loan interest rate, effectively, is NOT 5%. They can only use 3/5 of the money, but pay interest on the full 5M Euro, upfront. On a simple basis (ie without taking into account any time cost of paying up-front) this makes the interest rate something like 8.33% (5M*5%/3M). Furthermore the remaining 2M Euro is to be invested in fund managers of the Europeans choice. Their own funds? Fees payable? Who gets the profit? Not a whole lot of detail on that score.
Secondly, the loan may be unsecured, but that does NOT mean that if things go wrong the Europeans don't get their money back. Look at the details. The loan requires that an amount of "cash" equal to the loan is retained by the company. Guess who gets first dibs on that cash in the event of liquidation. Hmm, wonder if that'll be a sticking point with GRES....
And lastly, with all due respect to those who see this as a an absolute certainty and "safe as houses", this is not a simple matter of gluing the pipes together and letting the gas flow and the cash registers overheat. The market and all the other "conventional" financiers recognise this. That's why it's been difficult to get funds and our mngt have had to resort to more unconventional sources (and good on them for their success if it eventuates). And we still languish at 1c.
AWD Price at posting:
0.9¢ Sentiment: None Disclosure: Held
