"However, last week, Allegiance said Warrior Met issued a termination notice of the lease, leading to urgent negotiations to preserve Allegiance's business operations at the mine. A deal was struck earlier this week in which Allegiance agreed to resume paying the actual-production royalties beginning Wednesday. This deal led Collins to issue a notice of default on the convertible notes and demand payment in full of the $29.2 million in note obligations within five days."
Seems like AHQ was dealing with angry creditors of both sides. When AHQ acquiesced to Warrior Met's demands for higher production royalties, Collins Street pulled the plug on its line of credit.
Shareholders should be asking why this drama with the WM was not disclosed to the market (e.g., in the pump market update from last week). Seems to be market sensitive in nature (i.e., threatening the very existence of the company!)
AHQ Price at posting:
1.3¢ Sentiment: None Disclosure: Not Held
