Ann: Convertible Notes Redemption & Refinancing, page-2

I assume that MHC's Due Diligence resulted in sufficient assurance of a profitable future for AJQ.

Convertible Notes Redemption and Refinancing:

Armour Energy Ltd (ASX: AJQ, the Company or Armour) refers to its announcement of 3 January 2019in relation to the early redemption of the Convertible Notes (the MHC Notes) held by funds managedby MH Carnegie & Co (MHC).Armour is making good progress towards a wider financing transaction which will enable it to bothredeem the MHC Notes together with an early redemption of the balance of the Convertible Notescurrently on issue which are due to mature on 30 September 2019.In order to facilitate this wider financing transaction, Armour has:
 entered into an agreement with MHC with respect to new redemption arrangements for theMHC Notes;
 obtained approval from the requisite majority of Convertible Noteholders to makeamendments to the Convertible Note Trust Deed to enable the early redemption of allConvertible Notes currently on issue;
 entered into a mandate letter with an arranger in relation to a proposed new issue of securednotes; and
 obtained cornerstone investor support for $20 million of the proposed new issue of securednotes.