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Posted On: 03/17/2017 11:36:13 AM
Post# of 30037
The LOI is a done deal. Some people are posting about there being a termination date on the LOI. Any LOI including this one can be terminated any time by either party for any reason- that is why it is an LOI and not a contract. Sed has already completed all of their due diligence- this has been going on for many, many months. It was already done back in Oct. when AMBS hired BMI. I posted a link about Chan Heng Fai back then- he owns BMI, so AMBS was obviously in discussions with these guys probably going back to late Summer.
I expect we will have news of a funding soon after Sed's shareholder meeting next Wednesday. I'm sure they have a very definitive plan and a source for funds lined up once their restructuring is done after the meeting. The big question is how much equity will Sed take of AMBS and how much will be left for shareholders after the funding occurs.
The other big question is how does AVDX play in to all of this. They may have become involved in AVDX only because the toxics are secured on those assets and when BMI was hired in Oct, they weren't sure if they might have to invest in AVDX as well or secure some of the new financing on those assets to be able pay off the notes in full. However if they are able to fund AMBS on its own without having to involve AVDX, then they could walk away from AVDX all together if they aren't interest in the AVDX assets by themselves. On the other hand if they are in fact interested in the DX assets, then either AMBS may be selling their shares to SeD or AVDX could even merge with AMBS.
I expect the (2) $500k promissory notes payable to BMI and D&D will be paid off from the funding proceeds. They don't have any intention of converting those notes. They were insurance policy for BMI and D&D to be paid in the event a deal never happened.
I expect we will have news of a funding soon after Sed's shareholder meeting next Wednesday. I'm sure they have a very definitive plan and a source for funds lined up once their restructuring is done after the meeting. The big question is how much equity will Sed take of AMBS and how much will be left for shareholders after the funding occurs.
The other big question is how does AVDX play in to all of this. They may have become involved in AVDX only because the toxics are secured on those assets and when BMI was hired in Oct, they weren't sure if they might have to invest in AVDX as well or secure some of the new financing on those assets to be able pay off the notes in full. However if they are able to fund AMBS on its own without having to involve AVDX, then they could walk away from AVDX all together if they aren't interest in the AVDX assets by themselves. On the other hand if they are in fact interested in the DX assets, then either AMBS may be selling their shares to SeD or AVDX could even merge with AMBS.
I expect the (2) $500k promissory notes payable to BMI and D&D will be paid off from the funding proceeds. They don't have any intention of converting those notes. They were insurance policy for BMI and D&D to be paid in the event a deal never happened.
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