Well, still any funding at least gives them chance lory. Two things I think about it though.
Firstly, from the point of view of us who are more focused on how shareholders are treated than the share price of KAB right now, I would say that directors must feel pretty uncomfortable about the shares going up a third when this was so close. Apparently $500k already drawn. Also, that posters information was mostly correct. That would worry me if I was director.
Secondly. I'd say, need be careful of what's actually being provided here.
- the up front fees are not disclosed. Perhaps none and fee implicit in warrents? Don't know. What is total cost of this including the warrents at valuation?
- More importantly, will it get drawn or drag on and disappear as we've seen before? On the face of it having received $500k is good, that seems to give the deal credibility. But that may not have been received in cash, possibly fees? Warrents cover it anyway? Don't know how many given for each tranche. Most importantly, has different conditions precedent and approval level than other tranches. See next paragraph.
The most important tranche, $5.5m pre production, is subject to conditions precedent but also, "final sign off by Noble". So it appears that all that has really been approved here is $500k and we don't know if they got that in cash. Beware the spin!
KAB Price at posting:
1.6¢ Sentiment: None Disclosure: Not Held
