Ann: Secures $1.9 million funding package to drive growth, page-7

Is anyone actually reading through these AKK announcements and trying to match up what cash/capital/liquidity that they have? I still think they are short of the repayment funds for the RBL to the bank to begin with.

That said, look through the prospectus released in Section 7 for the Magna details.

Don't know if I have this right but I read it as:

1. US$275K loan issued as convertible notes at face value of $1.10 for each (so converting $302.5K of value)

2. Repayment is at 120% of principal outstanding (if converting after 90 days) which is to include a deferred establishment fee of 10% of principal outstanding. So I make the initial principle outstanding then of $332.75K and a repayment amount to be $399.3

3. The subscription deed allows for repayments to be made in shares at the lesser of 0.02 cents or 20% to 5 day VWAP. For grins call it 0.008 and issuing 49,912,500 shares. More than the rights issue just completed.

Hope my figures/assumption incorrect. Anyone else had a go.


IN ADDITION, there is an interesting clause 7.1 (a) (v) (B) which relates to this initial Tranche A of funding and that basically (my bolding):

7.1
(a)
(v) none of the following events have occurred:
(B)"... the closing price of the shares... on any trading day is below $0.012"

That has occurred - and is noted as a "Termination Event" which means Magna is not obligated to fund Tranches B & C.

Reading that right or wrong?

DYOR especially on the cash and liquidity. I don't think the price of oil makes a difference here ... they don't produce enough of it. This drill needs to be a real gusher to keep going IMO.