Christ its complicated6 Jan 2013 16:59
to elaborate on the previous mentioned asset of Lignol Energy - Wasabi Energy sold an 11% stake in ARW to Lignol(approx $4mill). To pay for this Lignol gave wasabi $500K in cash and 19million Lignol shares issued at $0.08 each, approx value of $1.52 mill. Lignol share price has since rose 56% to $0.125 ( a great return thus far)
the outsanding balance owed to wasabi energy is accounted for by way of a 10-month secured debenture for $2.25mill convertible into Lignol common shares at $0.15 each. Should Lignol shares trade above $0.20 for 7 or more consecutive days then a forced conversion will take place. Assuming this conversion of the debenture takes place Wasabi will own approx 29% of Lignol Energy.
29% of Lignol Energy with a share price of $0.20 is approx $7million.
Even with the sale of 11% of ARW to Lignol Energy, Wasabi will retain 21million shares in ARW which at todays share price gives a value of $231,000.
Its now clear why stephen morris (exec director at was) left wasabi board to join Lignol Energy. John needs to protect his investment :-)
The 10 month secured debenture for $2.25 million will be due in June 2013.