RE: Booboo says:12 Aug 2018 09:14
The point that is being made is if the previous owners couldn't make it work without the additional overhead of $6M pa then LH have an even bigger mountain to climb in turning this venture into a profit.
My personal point is LH's objectives may be slightly different to RGM.RGM need profit figures ASAP to avoid a massive dilution situation having now completely run out of money.Where as LH may be taking a more methodical and thought about approach in reaching critical mass.
So to put it another way RGM can't afford to wait even a month for this turn around to take place and I think we all know you can't recruit and train a team etc in that sort of time scale.
Note : expires 5th Dec 2018
Regency has agreed to borrow gross proceeds of $1,600,000 (net $1,520,000) from institutional investors in order to fund a portion of its obligations under the JV. The loan will carry a 10% interest rate and be for an initial term of six months, and is subject to an implementation fee of $96,000. A further six-month extension available for a 5% fee.
Anyone who thinks this loan can be paid back using coal turn around profits in that time is living in cloud fairy coo coo, land.IMHO