agree. there is nothing wrong with some short term finance to...

First 20 Last

Share
Profile

Follow
goldenx

2,274 Posts.

363

24/04/17

10:07

Post #: 24228573
Share

Originally posted by stevenjd ↑

the risk of debt, is how it is structured.

if it went into administration, after the debt fiance was all used, eg, due to an unpaid creditor, calling on payment etc.

if the lender, became a creditor, was infact a shark who wanted to steal the assets in a DOCA to a third party. ?? - im no finance expert, so not sure if that can be structured.

But, if,,,,, In that case, eg, under DOCA (deed of company arrangement) with is a means of transition from administration to return to liquidity - Shark mates company offer terms - you a consolidation of 100-1, Along with recapitulation, and if the creditor accepts say 50c on the dollar. . you accept 100-1 or nothing.

Its basically corporate theft.

Giving them shares is a safer option, or a convertible note that we can pay back plus interest, or they convert to shares. The convertible note is a better way, because if we do get the revenue flowing, can be paid back with interest, not shares.

We just dont want to have outstanding creditors, who can snap their fingers, and call in administrators who then just shaft the existing holders.

Expand

agree.
there is nothing wrong with some short term finance to tire over the co before the company starts multiple sources of revenue via convertible note route which makes the most sense. Would rather that then more dilution at current levels and would be seen as very positive as again, current prices are ridiculously low.

TV2 Price at posting: 0.9¢ Sentiment: None Disclosure: Held
9 Upvote

0 Great analysis

Reply

Top Stories

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Microcap Wrap: 5 explorers with news out today

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

RCE

Recce's R327 found effective against E.coli during clinical trial

SVL

Silver Mines models five new calderas close to 396Moz Bowdens deposit

LRV

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

CMX

ChemX Materials kicks off first stage works at WA high purity alumina pilot

LU7

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

AVA

Ava Risk Group expands US presence with A$0.7M Substation Deal

There are more pages in this discussion • 12 more messages in this thread...

First 20 Last

Add TV2 (ASX) to my watchlist

agree. there is nothing wrong with some short term finance to...

Top Stories

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Microcap Wrap: 5 explorers with news out today

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

Recce's R327 found effective against E.coli during clinical trial

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

Ava Risk Group expands US presence with A$0.7M Substation Deal

Featured News