RE: Loan Notes19 Jul 2021 20:19
Hi, not sure I agree with the £10m cost of funding. As I see it:
They loan £3.15m (70% of 4.5m loan notes). They will then get repaid £4.5m (100% of the loan notes) in 3 years - which ties to the 12% annual interest rate mentioned in the RNS.
105% of the loan notes means getting paid £4.725m - which is a lot better than the £10m mentioned here, however still excellent return - assuming settlement next year its a 50% return on 1 year loan. Hopefully the above is correct or I would expect more anger at such an (insider) arrangement!