The problem is timing - the first loan converts im
Post# of 2067
(Total Views: 295)
Posted On: 03/13/2020 1:40:07 PM
Re: Alascantrade #985
The problem is timing - the first loan converts immediately if not paid in full with interest the lender can convert so it's a doable amount over time but probably not by the conversion date of March 14th, 2020 then another one looms on March 21st. The total of the two is about 200,000 - not much for a producing mine but huge for a start-up with crew, fuel, supplies to buy to stay in production.Hard right now to accumulate the 200K needed by March 14th and 21st. Unless that first loan amount is in hand the lender can begin the conversion selling.
Best hope -short an angel who has landed on CEO's shoulder- is another toxic loan from a diff lender. You have to pay a loan off before you can get a new loan from the same lender. But if you can find another lender - probably on even worse terms you can kite the loans. Been trading loans around for years - and it's been very very costly.
The lenders are not the bad guys. They are making loans to outfits that can't borrow elsewhere and it's "stayin' alive" money that yep is hard to repay and the rates and terms are harsh and seem outlandish but they lend to high risk companies and make their money by taking that risk.
it did appear that Power Up spaced the conversions out and i believe gives notice to Mexus when they plan to exercise the convert option. Also - it's my understanding that even after they've begun converting - company can pay off the balance to end the conversions. I hope the full 200K is not converted to super cheap shares then sold. It will be very harmful to all shareholders to see these two loans go the conversion route. Share price actually held pretty steady thru the carnage in oils, other mining stocks and stocks in general and the Feb/March conversions. Can't keep doing that however.
Kinross down 14% today. Giant Newmont down 6% Mining stocks taking a beating - at some there are bargains to behold but when?
Best hope -short an angel who has landed on CEO's shoulder- is another toxic loan from a diff lender. You have to pay a loan off before you can get a new loan from the same lender. But if you can find another lender - probably on even worse terms you can kite the loans. Been trading loans around for years - and it's been very very costly.
The lenders are not the bad guys. They are making loans to outfits that can't borrow elsewhere and it's "stayin' alive" money that yep is hard to repay and the rates and terms are harsh and seem outlandish but they lend to high risk companies and make their money by taking that risk.
it did appear that Power Up spaced the conversions out and i believe gives notice to Mexus when they plan to exercise the convert option. Also - it's my understanding that even after they've begun converting - company can pay off the balance to end the conversions. I hope the full 200K is not converted to super cheap shares then sold. It will be very harmful to all shareholders to see these two loans go the conversion route. Share price actually held pretty steady thru the carnage in oils, other mining stocks and stocks in general and the Feb/March conversions. Can't keep doing that however.
Kinross down 14% today. Giant Newmont down 6% Mining stocks taking a beating - at some there are bargains to behold but when?
(1)
(0)