Hi Wazz, I like your interpretation better than mine but...

Hi Wazz, I like your interpretation better than mine but struggle over a few of the points:

1. Why 2 years for loan term...Equity Swap says payable over 6 months. Can't sell any shares for 2 years. Do you think the plan is AKK repurchases the shares from Lanstead in 2 years time (as has happened with other Lanstead ESAs)?

2. I think there is a missing data point in that it is assumed (maybe?) that there are 6 equal installments. Couldn't it just as easily be 50% paid now and balance over 6 equal installments

3. It does say "Should the measured Share price be below the Benchmark Price, the Company will receive less than 100 per cent of the expected monthly settlement on a pro rata basis" and that implies total would be less than $4.5M

4. It also says " In no event would a decline in the Share price result in any increase in the number of shares received by Lanstead, or any other advantage accruing to Lanstead." This seems carefully worded and if combined with the preceding sentence (above) it implies to me at least that if you pay less $$$ for the same number of shares then your cost has been lowered.

5. It also says "Lanstead will invest $4.513 million into Austin by way of a subscription for 59,000,000" and not up to $4.513M so I take your point that it is cast in stone. But then perhaps that is the point of the equity swap agreement. If the price is not 10.3cps AKK has to repay prorata the difference from the total amount of $4.513M as some kind of finance expense.

I mean its a derivative - each month for the next 6 months there has to be a winner and a loser and "cash" changing hands. (either Lanstead paying if above 10.3 cps or AKK paying if below 10.3 with the floor at 7.65 cps).

Again I could be way off as this is testing the bounds of my working knowledge. Resembles a CFD does it not..