nathanblackI am very familiar with these type of facilities and...

nathanblack
I am very familiar with these type of facilities and when used properly they are very good. Its when companies use these to pay wages and other non income producing reasons they are an issue. GGP would use it as part of a drilling program, this is how the IG put it in their business plan, and initially a $30M facility might be the way to go....however in GEM and the IG due diligence we agreed that $15M would get to the point of good cashflow from oil and gas. So the benefit to all was an improving shareprice and less of a need to further draw down.

The draw downs are at the controll OF THE COMPANY and convertable notes when used by Novus is to drive the shareprice down and therefore have the company reliant on more CONvertible NOtes.

SG is never going to have others onto HIS gravy train....I find it amazing he is the Chairman and MD dosent that strike as being odd. Where is proberty and good governance. SG needs to move on and now.