RE: The Polemic.11 Nov 2019 19:01
Thanks for your thoughts Setanta and as we've come to expect from you a well written, balanced post.
Only time will tell if this very large dilution at a very poor price will be worth it.
A couple of points, the purchase of H&W, we were told was to be funded by debt & maybe equity "The Company is in advanced negotiations with a number of lenders to provide a long-term debt facility to provide the balance of the £5.5 million consideration, and equity will be considered also"
I don't think any of us expected quite so much equity!
From today's 2nd rns
"The Company remains on track to complete its debt capital raise to complement this equity raise. Debt capital will take the form of asset backed finance and working capital trade finance, both of which we expect to come to fruition soon after completion of the acquisition."
Also the 500k 2nd Riverfort drawdown is NON CONVERTIBLE (unless the company defaults in the future)
From today's 1st rns
"The Company will draw down the second tranche of the debt facility provided by YA II PN Ltd and Riverfort Global Opportunities PCC Limited ("Lenders") under the Bridge Loan for a sum of £500,000 (after costs and initial interest payment) in order to pay for the overheads of Harland and Wolff for the month of November 2019. This tranche of the debt facility is non-convertible and carries a fixed interest amount of £40,000, half of which is deducted from the advance of the loan with the balance repaid on the first repayment date. The loan will enjoy an initial three-month debt repayment holiday and will be repayable thereafter in three equal monthly tranches on the first day of each month starting in March 2020. The Lenders will only have the right to convert this tranche of the loan in the event of a default by the Company in repaying the loan on the dates mentioned above"
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