Have I got the wrong end of the stick here. My understanding was immediately on drawdown equity was given to Truestone at 85% of the lowest of the the VWAP of the previous 5 days. To save everyone looking back at the Touchstone web site which Im sure they wont mind having pasted here.
"With traditional sources of capital unavailable or too expensive, companies are looking for other ways to raise funds. Equity drawdowns offer an efficient and flexible alternative. Equity drawdowns combine the best features of conventional equity placements and lines of credit. Structured as a contract between company and fund, they give the company the option to sell equity to the fund for cash up to an agreed limit. Easy to arrange, simple to manage and reassuringly transparent, drawdowns are an ideal solution for growing companies that want to avoid having to raise capital at any price. Guaranteed capital In unpredictable markets an equity drawdown offers control. The selected fund has to buy regardless of conditions. Access to capital is guaranteed and the cost of that capital is known in advance. Maximum flexibility Most conventional fundraising structures favour the market. With a drawdown the company has the advantage since it can choose when to sell and at what price. Immediate benefit The drawdown process is very efficient as the company receives the capital immediately. Shareholder protection Drawing down when the share price is high limits dilution and contracts can be structured to prevent shorting. Limited risk Substantial equity transactions have an immediate effect on market prices. Raising capital in instalments limits this risk. Positive news The announcement of a successful funding strategy is good for market confidence, sending a positive message to investors, counterparties and partners. Negotiating tool Potential joint venture and off-take partners often seek equity stakes: a strong capital position provides a stronger negotiating position. Convenient to arrange There?s no need to roadshow an equity drawdown facility. The process is quick and costs are low. Since the fund is only assuming market risk, only limited due diligence is required. Endlessly versatile From fixed-term to open-ended arrangements, there is a drawdown structure for most corporate situations. Even when traditional capital raising options are available, a drawdown can still be a useful alternative. A forward move Drawdowns make the future less uncertain. They can even be structured like a forward contract to include fixed payment dates''
VIL Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
