Financing, page-10

Szaba,

That is an interesting scenario.   Its possible.  Meridian would certainly need to crunch the numbers - as they are Not likely to hold any SNE Assets as security.  IMHO, they will probably want 12 to 15% and conversion would have to be generous to them.  

And any default by FAR will mean ordinary shareholders get wiped out and Meridian takes over FAR on the cheap.  

It certainly can work for Meridian.  Just not sure how you feel about it, as an ordinary shareholder; in the case of a default.   

You should note under this scenario: the yearly interest payment, for project finance and Mezz finance (via Meridian) will be in the vicinity of $30M plus.  

So by 2022, FAR will need to find around $100M of interest payments, before first oil.

If you further assumed Meridian picks up the tab via more convertible notes issued, then they will be in the box seat to take over the company for next to nothing.

This scenario will work if the price of oil picks up, leading up to 2022. 

That is a big gamble - the same gamble STO made (on gas prices).