The notice of AGM published at 5pm on the 27th October is a very interesting document. It reveals details of some of their capital raising
Short term borrowings at 12% which were not re-paid on schedule and are now attracting a credit card type rate of 18% on a monthly roll-over basis.
Other borrowings at "normal market rates" of 13.2%.
Plus lots of options at preferential prices to the lenders.
Establishment fees paid to lenders or organisers of the loans.
If shareholders do not approve the issue of 30m options to RBC then the $1m they lent which is repayable on 6th Jan 2004 will be repayable within 10 days of the AGM. What choice do the long suffering shareholders have? The lenders are getting 30 million options for lending the $1m for one extra month. (10 days after the AGM is about 7th December. The funds are normally repayable on 6th January 2004. Why give them the options unless the company is desperately short of cash?)
Placement of up to 200m shares at preferencial rates to some including related parties.
Chairman not seeking re-election. The company published the notice that Michael Bowen, a director since March 2001, was resigning 30 minutes after the notice of AGM was received.
Anyone who is considering a long term investment in Brandrill should read these recent announcements very carefully, particularly the notes attached.
BDL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
