The whole amount will be a convertible note. That is how they need to be set up. Their will be a $7.5mil con note and an assosciated 3B announcement.
Every month GGP will drawdown those notes. The notes on issue will get lower but that amount. Once drawndown their will be interest payable on the loan amount, but that amount will swiftly be converted into shares. This will happen monthly.
In most instances the provider doesn't need anywhere near the full $7.5mil because they will sell shares and re-lend the same $500k over and over.
That's how all the Springtree, La jolla, Bergen, GEM, etc opperate. So it's still a con note. But it's not important. Atleast their is some flexibility in the amount we drawdown and less restriction than the GEM facility when it comes to selling not being capped at 9.9%
The finer details will be interesting. Particularly WHO. My money is still on Roswell Capital.
GGP Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
