This is the sort of offer that a company with JAY's track record...

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Davisite

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6374

05/02/24

16:10

Post #: 72245587
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Originally posted by midas.m ↑

Dear JAY Management,

The term sheet looks terrible, this is a really dumb transaction, upon reading it I felt like I was in a dark alley in a red light district somewhere looking to borrow funds so I could be drugs.

For each $100 you will pay $53 in interest, you will pay $20 in the form of a discount at conversion and you are giving the subscriber $20 in option value.

That's $93 for every $100 you borrow. Unusually there is no 6% fee or 2% documentation fee, this is probably an oversight so beware, your transaction costs increase to $101 for every $100 you borrow.

You are putting in 12% of funds. You would be better off finding a few friendly shareholders and subscribing for say $400k of shares at par, put it in as director loan, and then treading water for 2 or 3 months and going back to market when things are a little better. You will be better off and JAY's shareholders will be better off. Don't pay 6% on your money.

Cancel the transaction, go to market with a cornerstone of say $300-400k, if you get more great, but if not, who cares, you are cum raise anyway, how much worse can it get.

The transaction being offered is utter crap - the provider should be embarrassed, where else on earth does anyone charge this much for a loan.

I hope you read this. Good luck.

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This is the sort of offer that a company with JAY's track record attracts these days trying to raise more than 25% of their MC. They needed to cut harder earlier and get to breakeven 6 to 12 months ago.

My best guess is they are going to be sold off to some competitor in 2024. It is all about salvage now.

JAY Price at posting: 2.5¢ Sentiment: Hold Disclosure: Held
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(20min delay)
Last 1.1¢		Change 0.001(10.0%)		Mkt cap ! $2.599M

Open	High	Low	Value	Volume
1.1¢	1.1¢	1.1¢	$1.361K	123.6K

Buyers (Bids)

No.	Vol.	Price($)
2	128802	1.0¢

Sellers (Offers)

Price($)	Vol.	No.
1.1¢	75000	1

View Market Depth

No.	Vol.	Price($)
2	128802	0.010
2	161501	0.009
2	310000	0.008
2	540000	0.007
2	1250000	0.006

Price($)	Vol.	No.
0.011	75000	1
0.012	60000	1
0.014	111058	2
0.016	258535	1
0.017	277610	2

Last trade - 11.38am 02/10/2024 (20 minute delay)

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This is the sort of offer that a company with JAY's track record...

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