ya global and wisco

Obviously ADY has had to crawl back to YA Global in order to survive.

The deal is very favourable to YA Global. More so than what was rumoured ( unconfirmed) Oct last year when they offered a loan at a conversion rate of 4cents. Remember the Board said that the two loans ( including YA Global's)they were waiting for had not materialised. Funny how one has now been reoffered at a more favourable rate to the lender.

Again I suspect that the Board may not have agreed to the YA Global terms LY due to the pending sale of Rincon and any pending Charge benefits.But Rincon has come and gone and ADY still owes $11.5m and now the terms may not be as beneficial?

Didn't the Board say that they had to sell Rincon to repay all debts?

By seeking YA Global funds I assume that ADY does not foresee the Wisco joint venture materialising. Otherwise they would have negotiated a cash advance( in order to repay debt) pending the transfer of the 40% of Vallenar.

For those who are anticipating ADY to recover $50m from Vallenar... dream on folks. Do your homework. 60% of Vallenar is already owned by ADY. Only the 40% is potentially payable to ADY and this is unlikely to mean a cash payment.

Conclusion

Will ADY survive?

Not unless a Wisco joint venture materialises is my view.I cannot see $25m profit pa being generated. Maybe the company can provide more details to shareholders?