Really recommend anyone curious about the deal ring and speak...

Really recommend anyone curious about the deal ring and speak with Henry

I just got a hold of him then on the phone and am now entirely content with this funding arrangement

There are the following sort of restrictions:-

- Can't trade more than X% of the daily volume
- Can't trade more than X% of the face value of security
- There is a floor price for conversions (means no death spiral)
- SOC have the option to buy the stock back at a fixed premium %

So this is not a funding deal whereby Bergin for example can loan $1M, sell down fiercely in parcels of $100k, convert and sell, convert and sell as we have seen with so many others

This is a deal whereby Bergin has fronted $1M and once converted, cannot sell more than a set % of the daily volume or the face value of their note, cannot convert or sell beneath a floor price and SOC always retain the option to buy them out at a fixed premium to the conversion

I think I prefer this deal to a retail raise actually, as it would have come without these restrictions, likely 20 or more different holders and a swag of fees and options to the broker

Here, if we get back to 20c then the conversion should be around 18c (which is a premium to the current price), and also encompasses a huge swag of restrictions that it wouldn't otherwise

Like I said, SOC have never done a deeply discounted placement and once you understand this deal and structure, they have stayed in line with that

Now what Bergin require is big volume days at prices where they are well in profit in order to churn out stock once converted. Ideally if they convert at 18c, say their average becomes 16c with the fee, then they are going to need large volume days between 16-20c in order to sell out their stock as they can only trade a % of the daily volume

I mentioned the announcement was rather vague and needed clarification but they said that was Bergin's standed announcement and that they were happy to discuss over the phone with anyone