re: mick ryan
Well, at yesterday's AGM the shareholders approved by a tiny margin on a poll the issue of 30 million 3 cent options to a lending group headed by ex director, John Fletcher. The shareholders attending were not too happy about it.
This was part of the conditions of a loan (described at the time as normal commercial conditions!) of $1m in October at an interest rate of 13.2% and an establishment fee of $15,000. The loan is due for repayment on 6th Jan 2004. If the options had not been passed the loan would have been repayable about 6th Dec 2003. Not bad! - Lend $1m. Fees $15000, interest 13.2%, and options perhaps worth $660,000 for lending for one month more if you are lucky and the company survives. What kind of interest rate does that work out at? Anyone's guess. (Figures from notice of meeting.)
I reckon shareholders who voted for the option package must be mad. It just shows what money costs if you need it badly. Lenders can hold you to ransom. Another loan of $1.2m is on call and currently costs 18% per annum That lender got 10 million options too for lending $1.22m.
And the shareholders gave the company the right to issue another 200 million shares at 80% of the market price at the time they are issued..
No wonder they have to sell something. There was mention of the potential sale of Quick draw or something like that, but I got the impression it was only a part of their technology used for bringing down underground boulders, and not a great deal of money. It was not the PCF side from what I remember.
But the rumour may have some substance.
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