ARU 1.35% 18.8¢ arafura rare earths ltd

ya global, more and more confusing

  1. NNZ
    104 Posts.
    I don't get it once more. Can anyone help me please.

    "Cumulative draw down facility cannot exceed 5% of total ARU issued capital"

    The facility is good for 20 million AUD, and shall be the lifeline if ARU can't place the shortfall. But if we end up with only 200 million shares after the selling period of the shortfall (that would be a scenario where YA Global must help) and YA Global is only allowed to buy 10 million shares, where will the 20 million come from? Will YA Global really pay 2 bucks per share? Or will 3 million dollar be enough to keep ARU afloat?

    So much discussion about the YA deal and now ARU comes up with the important fact that YA is only allowed to buy 5% of the company. Would have saved me some sleepless nights if I had been told earlier.
 
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