(Total Views: 762)
Posted On: 11/17/2020 6:32:57 AM
Post# of 148899
Sanity from Kabonk on another board
<<I am no financing expert, but here is my take:
Iliad/Fife loaned us $15M on 3/31/20, $25M on 7/31/20, and another $25M on 11/10/20. It looks like Iliad/Fife wants paid back on this $65M sooner than the 2 year terms. The Investor/Iliad/Fife is requesting $7.5M x6 = $45M back by April 2021. I guess it's kinda like a rolling loan that keeps increasing, with interest and quicker payback terms. We are using the new loans to pay back the old loans. Not great terms, but "non-dilutive."
First loan terms:
https://www.sec.gov/Archives/edgar/data/11756...246d8k.htm
Second loan terms:
https://www.sec.gov/Archives/edgar/data/11756...005d8k.htm
Third loan terms:
https://www.sec.gov/ix?doc=/Archives/edgar/da...400d8k.htm
The Investor is an affiliate of Iliad Research and Trading, L.P., the lender under the outstanding secured convertible promissory notes issued by the Company on July 29, 2020 and March 31, 2020 (the “Prior Notes”).
In addition, beginning in the month of November 2020 and for each of the following five (5) calendar months thereafter, the Company is obligated to reduce the outstanding balance of the Note by $7,500,000 per month (the “Debt Reduction Amount”). Payments the Company makes under the Prior Notes will be credited toward the payment of each monthly Debt Reduction Amount.
Looks like early payback of the old loans are requested.
Overall, it's very short term financing. NP truly believes stock is underpriced, and is making a hard bet that stock will be higher over the next 6 months, when so much of the loan needs to be paid back. I think he is hoping to raise money above $10, or at least in the past was saying he hoped to raise at $6-7 in one of the videos (I know, he exaggerates a LOT and is VERY optimistic).
Agree that it's a very unusual payback term. Huge $$. Nader really must believe we are close to $2B in sales to take such short term financing on such poor terms to my simple finance understanding mind.
<<I am no financing expert, but here is my take:
Iliad/Fife loaned us $15M on 3/31/20, $25M on 7/31/20, and another $25M on 11/10/20. It looks like Iliad/Fife wants paid back on this $65M sooner than the 2 year terms. The Investor/Iliad/Fife is requesting $7.5M x6 = $45M back by April 2021. I guess it's kinda like a rolling loan that keeps increasing, with interest and quicker payback terms. We are using the new loans to pay back the old loans. Not great terms, but "non-dilutive."
First loan terms:
https://www.sec.gov/Archives/edgar/data/11756...246d8k.htm
Second loan terms:
https://www.sec.gov/Archives/edgar/data/11756...005d8k.htm
Third loan terms:
https://www.sec.gov/ix?doc=/Archives/edgar/da...400d8k.htm
The Investor is an affiliate of Iliad Research and Trading, L.P., the lender under the outstanding secured convertible promissory notes issued by the Company on July 29, 2020 and March 31, 2020 (the “Prior Notes”).
In addition, beginning in the month of November 2020 and for each of the following five (5) calendar months thereafter, the Company is obligated to reduce the outstanding balance of the Note by $7,500,000 per month (the “Debt Reduction Amount”). Payments the Company makes under the Prior Notes will be credited toward the payment of each monthly Debt Reduction Amount.
Looks like early payback of the old loans are requested.
Overall, it's very short term financing. NP truly believes stock is underpriced, and is making a hard bet that stock will be higher over the next 6 months, when so much of the loan needs to be paid back. I think he is hoping to raise money above $10, or at least in the past was saying he hoped to raise at $6-7 in one of the videos (I know, he exaggerates a LOT and is VERY optimistic).
Agree that it's a very unusual payback term. Huge $$. Nader really must believe we are close to $2B in sales to take such short term financing on such poor terms to my simple finance understanding mind.
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