1) Flexibility at a Critical Juncture.
Bridge Financing, until UK Grant ~ Any Grants will be specifically for Belfast construction, not for the day to day running of any of IXR's other ventures.
Maintain momentum across all projects ? (see immediately above).
2) Support for Growth Engines
Funds for Belfast, critical life support.
Viridon - Are they going to build a bigger mail room before they know if Belfast will go ahead?
Makuutu - Maintenance, Even if the UK comes good with a Grant, Makuutu will still not have any funding.
3) Market and Shareholder alignment
Is CREDITOR friendly, IF Belfast is successful, they can convert to Shares which will be diluting, otherwise they get first call on assets.
How many 'Retail' Share Holders are capable of participating in this CR?
Said loan cannot be paid back from Government Grant, if it is used on Virdon, Makuutu and G&A. They are going to have to find funding from somewhere else to cover those expenses. Therefore, if the Company survives it would be highly likely that this loan would convert, resulting in about a 10% dilution for $3M. If not, Retail still gets zilch, and these "Sophisticated Investors" get to become Creditors. I fail to see how this is Shareholder friendly?
4) Strategic positioning
IF UK Government Grant funding, IXR are going to have to find funding for the balance of the construction cost.
IF not, FID for Belfast becomes questionable ?
Scaling of Viridon, a bigger post box !
Further Off-take agreements ~ they still need some binding MOU's
(20min delay)