Read Section 12.4.Fees and Expenses Company shall pay a Due Diligence Fee of Twenty Thousand Dollars worth of stock to Investor.Company shall transfer to Investor the Company's Ordinary Shares equal to five pecent of the Commitment amount upon signing this agreement.(Commitment Shares) The pricing for the Commitment Shares will be based off of the Purchase Price using the ten previous days prior to the date the Agreement is signed.
The 183.8m shares issued to AGS are only the fee for having the $25m facilty. 5% =$1.25m + $20k in edm shares
And now the SP is below .009 they can't use the facilty and had to issue 378m shares & options with someone else.
AGS currently has 124m EDM and there are 1795m EDM on issue. Even if the sp was 1.1c the most AGS could issue would be just over 50m shares @ 1c before they go over 9.9% ie $500k,other wise AGS have to sell more shares if EDM want more finance.
Vicious circle imo.
BTW,MDA have the same deal with 1.4c minimum and AEX with .003 AEX has a $5m facilty and their fee was $250k +$20k in stock.
EDM might have to consolidate like MDA or push this really hard over 1c with good news.With AGS and the new .4c shares it will be hard. Hope they find something for eveyone's sake.
Pity the PDI announcement on friday was next door to the edm jv. Maybe soon.good luck Just my opinion.dyor
EDM Price at posting:
0.4¢ Sentiment: None Disclosure: Not Held