gem funding, page-18

ASF, for me one of the keys to the agreement would have been if they were capped at 19.9%, sometimes La Jolla stipulate it in their contracts. Other times they get waivers.

Being capped at 19.9% for GGP would mean it is as bad as Novus, if not worse. That's only about $2mil. So everytime GGP drawdown $2mil, GEM are then forced to sell down before any further drawdown.

Similar to the current notes, only Novus aren't forced sellers.

And $2mil doesn't get GGP very far. I would think the first $2mil would be lucky to get 0.45c going on current vwap.

So it certainly doesn't remove any downward pressure on sp.

Maybe someone close to the deal can elaborate on any ownership cap or lack of.

Without the cap, they would wind up 50% shareholders. Possibly more if the sp continues to fall. That's decent dilution.

But it was an excellent achievement by the IG to secure funding from an international company. Especially given the fact SG has said it's virtually impossible under current circumstances. And they manage in a relative short time and without any data from within the company.

GEM showed alot of trust to deal with someone other than the company. The sad thing is it wasted IG time and they are not paid in any way. And GEM got nothing for their troubles either.