Bubs IMO you have to read "across" the way its phrased. 1....

Bubs IMO you have to read "across" the way its phrased.

1. References a "Facility" - so this implies that it more of a liquidity stop gap and not any form of loan. Ignoring the opening paragraph, but reading more on page 2 it is implies that this "facility" and current cash reserves (we'll see what they are shortly wont we) is providing "financial flexibility in the short term". Again, to me that reads like ....ummm running out of cash (again) and in need of working capital.

2. Taking a loan is capital raising -  just not from equity investors. Debt instruments have a priority claim on the cash flows of a company as well as rank ahead of equity holders in the capital structure. Your risk as an equity holder just got a little higher with debt taken on board.

3. None of the favourable terms were disclosed, so equity investors are in the dark about when it matures, what the rate of interest is, what collateral (if any) was put up and so on.

4. The most intriguing aspect is the project finance - assuming AKK is using the term in the way the financiers use it. If its "just we have a project and we are looking at our financing options" then who cares. I'd be much more interested in the "advanced negotiations of a much larger project financing funding facility".

Good luck.