Agree Watso - the below loan wreaks of being an insider deal at GDA holder's expense
The loan receivable is an unsecured converting loan to Amazon Resources Limited (ARL) with a limit of $750,000, of which $530,000 had been drawn down at balance date (December 2012: $400,000). The loan is convertible at the election of the Company into shares in ARL at 10 cents per share or, if lower, the issue price of any new ARL shares in an IPO or otherwise. Interest is payable at 10% per annum. The Board believes it is prudent to make full provision against the recoverability of the loan at this time given the likelihood that it will be converted to shares and the uncertainty of ARL?s IPO plans and ability to raise further funds. Accordingly, a provision of $530,000 has been made (December 2012: $400,000). However, the Board will use its best endeavour to recover the loan from ARL, if not converted. 30 June 2013 $ 31 December
GDA Price at posting:
5.9¢ Sentiment: None Disclosure: Not Held
