I would say that CCA will prefer not to draw on the second tranche of the Altor loan. It is expensive and could be extremely dilutive. They will also wish to avoid breaching the $1m cash reserve covenant on the initial tranche, to avoid early conversion at depressed prices.
This makes the $1.5m proceeds from the Ivy “monetisation” all the more important. We await further information as to what part of that $1.5m is represented by a capital distribution from Ivy. A quick glance at Annexure 3 indicates it may be $1.15m. Ivy itself appears unwilling to make comment on this matter but CCA may be required to, especially as the decision appears to have been made whilst CCA was a member of IvyKoin LLC. Presently, it is difficult to understand how a capital distribution from Ivy might be justified.
