good pick up . and what an endorsement if Orica are making the...

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Harmattom

1,726 Posts.

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11/10/19

11:05

Post #: 40832312
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Originally posted by rexsh: ↑

Rick

"Additionally, Orica has agreed to extend the date for repayment by Strike of the $2.5 million loan made by it in 2013 from 30 June 2018 to 31 December 2021, effective upon execution of the New GSA. The loan will accrue interest from 15 July 2018 at 5.8% per annum and the principal and accrued interest will be convertible into Strike ordinary shares, in whole or in part at Orica’s election at any time after 1 September 2018 until the maturity date, at a conversion price that is equal to the 30‐day volume weighted average price but not less than 20 cents. The shares will be issued without shareholder approval. "

I think you will find that this is the conversion to equity that we saw a few weeks back. Orica have elected to convert this loan into an equity position in STX rather than calling on the repayment.

IMO

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good pick up . and what an endorsement if Orica are making the election to convert at the current 30 day moving average then i would say pretry categorically that.
1. they know the price (30day MA) is only going up
2. that conversion to shares.and capital appreciation trumps the 5.8% interest rate.that they would otherwose earn.

orica would have the inside scoop on where stx is going. yet another endorsement for where stx is going

STX Price at posting: 27.5¢ Sentiment: Buy Disclosure: Held
9 Upvote

3 Great analysis

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