They did allude to that in the announcement actually Longreach:...

They did allude to that in the announcement actually Longreach:

“Avatar Finance has also indicated its desire to undertake further debt conversions. Seafarms is considering (subject to obtaining shareholder approval) making amounts outstanding under the existing facility agreement (after the Debt Conversion) convertible into Shares up to a maximum of $12.2 million, at Avatar Finance’s election, at an issue price of A$0.09 to avoid the need for obtaining shareholder approval prior to any further debt conversions. Further details will be provided if the Company decides to proceed with this.”

I guess you could look at this a number of ways.

1. Trahar has more money than sense (that’s for Stash as he’s on mute)

2. Trahar has great confidence the overall share price will eventually be much higher than 9c even after inevitable further dilution.

3. He recognises that both shares and debt will be worthless if the company fails so might as well have the shares.

My overall sentiment regarding CR and terms is exactly the same as yours Longreach, was hoping for something different but also impressed they can raise those funds in short time, and probably means there is plenty more funding on offer from HNW investors and Insto’s once a more comprehensive funding plan is established. Not sure yet if I’ll participate as I already have loads and would be averaging up, but if you have capacity I agree it’s an opportunity either to participate or buy on market it’s probably a good chance to do so. SP will likely drop to 9c or below in the coming weeks, tempting to short it and buy them back if it stays trading closer to 10c.

Also note in the offer it says you can only buy total $15K across all holdings, not per account, though not sure how they can enforce this when owned in completely different entities eg SMSF and Family trust