No need to apologise AntN, asking questions and wanting to learn is a good thing, it's nothing to be sorry about, theres plenty of helpful people knocking around HC and how do we learn if we don't ask? Mogga and Jet also seem quite friendly old chaps too, they've been hanging out on this merry-go-round investment for donkies, they be real keen gold diggers from what i can gather, just waiting for the right drill i guess, one good drill like a good one of fosterville's drills would certainly make things interesting.
The appendix here today goes like this....
7,000,000 convertible notes were issued to some spivs, these spiv's coughed up 10c per convertible note and can be converted to shares at any time before 2024, Jet seems to think might be the old GT, but i don't know who they be so i just call them spivs because of my lingo and training. This works out at a lazy $700,000 payment to the NAG cash balance minus any fees, charges, Lawyer bills etc, etc, etc.
These owners of the convertible notes also get some freebie options, 2,000,000 of the potential beauties which have a strike or conversion price of 12c expiring 2024, both the options and the convertible notes be turned into shares at anytime before 2024, the convertible notes get converted for free because they've already paid the 10c each but the options will require the holders to pay the company NAG 12c per option to convert.
During the period of time the convertable notes are held they attract interest payments from NAG to the note holders of 10% p.a calculated and paid every 6 mths..... Or .. $70k a year in interest payments to the note holders (spivs). In this day and age when and while the governments and central banks have got themselves into and remain in a pickle thats not a bad return......70k multiplied by 5 yrs = $350,000 which equals half their money back and then when the notes are converted at the end of the 5 yrs then they only need to get 5c a share to break even or just lose the normal interest of about 2% they would have got in the bank. The note investors are just trying to beat or better a normal cash return and think the 10% for 5 yrs, the 2,000,000 free 12c options and the potential to sell the 7 mil notes as shares on the market in 5 yrs time (or before) accounts for the extra risk of investing in NAG compared to cash in the bank or some other investment. These notes are basically an effect of low interest rate policy and i suppose handy for companies like this.
I'm also pretty sure that if the noteholders convert some or all of the notes before the 5 yr expiry they cease to get the 10% interest, i think the notes only attract the 10% interest if they are held as notes and when converted to shares the interest stops coming in.
@JetBlue do you know if this is correct?
They call them incentive options and offer them as a golden carrot to assist the $700,000 sale of convertible notes, NAG has had to give them to get the $700k in the bank and keep that extra slow drill turning
. ..... Fast drills cost alot though and to my mind it's best if NAG minimizes it's costs at least until it gets a good result because a good drill result will warrant the extra spend. Some gold drillers go flat out, fail hit dry holes and destroy their SP's and basically have to re-birth themselves to get themselves going again which wipes out SH, whereas NAN wisely wants to be sure before risking too much shareholder capital, you just need patience here, they might hit it they might not, time will tell but ones things for sure they're not raping the company, wages arn't too bad and running costs are kept tight, its a share for patient people or long term investors imo.
I hope this explains it for you and you can go back and read the 3B or previous ones with notes here at NAN and understand them properly for yourself. It's good to know and understand all these things and see what and how other people, investors and spivs etc choose to invest in NAN because this can also lead one to working out why they are investing and the risk they are willing to take to do so because the more pooled info/data one considers the better understanding of matters one should get/have.
Best Wishes
Fish
