Genuine question22 May 2015 09:39
You raise a good point, and I would say as follows:
1. The sp was on the bones of its whotsit, so any fundraising was essential for survival.
2. The terms are pretty good in todays climate;
3. The company has the option(as far as I am can see) to pay back the loan plus a three percent premium, before conversion. Therefore if we have a decent climb in fortunes and get some cash in, there is no need for dilution as the company would pay the loans off.
Russell.