20% repayment charge11 Jan 2018 15:43
They are say �630k repayment but forgetting to mention a 20% repayment charge on top of that amount.
As always very, very misleading .
d) If the price of Shares is below the Fixed Conversion Price Regency may prepay subject to a pre-payment fee equal to 20 per cent. of any amount prepaid.
Regency would expect to exercise the prepayment option in the event of a fall in price to significantly below the Conversion Price.
The purpose of the Placing is to enable the Company to develop its U.S. operations and to retire the entirety of its $381,625.21 existing debt.
Andrew Bell, Chairman of Regency Mines, comments: "This facility diversifies our funding, achieves a better currency match between our liabilities and our revenue streams, and retires existing debt. If the share price remains strong as we anticipate then the effect is likely to be similar to that of an equity funding, without warrants, at 1.15 pence per share.
In analysing this facility the Board considers the value creation potential of the Company's rapidly expanding coal assets in the United States to significantly outweigh the cost of capital paid to investors, and notes that the Lender will have a direct interest in the Company's share price performance over the next year. We look forward to these funds directly impacting the Company's bottom line and future share price performance."