Ok, one last time and I'll leave you to it.
We know that original terms of the con notes involved a conversion agreement and an expiry date.
We also know that the actual Con notes were issued under a Con Note Deed which detailed all of the covenants and events of default. We have not seen the total document, however we know there was key clauses in relation to MC and also some conditions on adverse dealings and control events. We know that NXE have clearly not met the MC condition, so that is at least one default event they can claim (perhaps they have or they may have others)
It is also probable there are some issue in regard to adverse condition and control issues, although we don't know that!
We do not know what events of default Arena are citing to call in the funds, however we know that this is the normal practice for someone wanting to get their money under the terms of original agreement.
We also know that when an entity defaults under loan terms then original terms are void and the terms of default take effect.
Obviously NXE can argue the point and I am not privvy to how strong their case is, so the lawyers will argue their cases.
The point I have been making is - it is nonsense to point to an original conversion agreement as some sort of smoking gun and I daresay the company agrees with this given the MD;s original comments about the demand, although they have decided to fight the full amount.
And again, why would Arena bother taking down a link to another website quoting a press release which is obviously what happened at that time and is irrelevant to default clauses
NXE Price at posting:
4.3¢ Sentiment: None Disclosure: Held
Ok, one last time and I'll leave you to it.
