It seems to be a theme with these guys, loan money to someone(or...

First 29 Last

Share
Profile

Follow
Hingdog

11,263 Posts.

307

10/12/18

19:31

Post #: 36810953
Share

Originally posted by uncystu ↑

What do you make of this?

Page 50 of the IER:
- On 10 July 2018, the loan agreement with Capital Credit (owner of the purchased debt ledgers) for an amount of $0.4 million (including capitalised interest at 30 September 2018), was extended until 7 January 2020. Subsequently, all of the accrued interest and 5% of the loan capital has been repaid.

Page 29 of the HML Annual Report:
(a) On 10 July 2017, the Company entered into a short term agreement with Growth Point Capital Limited ("GPC") (acontrolled entity of the Investment Manager for accounting standard purposes). A maturity date of one year from theadvance date applies, together with a 5% p.a. interest rate. Should the Company elect, the loan may be repaid whollyor in part by way of shares of Growth Point Capital.

On the 10 July 2018, the loan was extended until 7 January 2020. Management have considered the recoverability of the loan and have impaired the asset by $250,000 based on estimates of the recoverable amount that Growth Point Capital Limited is expected to be able to repay. Subsequent to the year end, all of the accrued interest and 5% of the loan capital has been repaid.

So basically JBFG gets their loan repaid in full while HML gets stiffed to the tune of $250,000. No surprises there.

This is where it gets interesting - if you do an ASIC search for "Growth Point Capital" you see the following:

Are we looking at two separate companies that have shared the same name? Or one company that has changed name twice? Note that the ABN's are different.

Expand

It seems to be a theme with these guys, loan money to someone(or their company) then write part of it off and/or accept worthless stock as payment of the loan. Obvious conclusions can be drawn as to why you'd enter these deals and why you'd be so willing to write them off

This was Bartholomew Roberts(of which we are a sub holder so partly our money being loaned) :

"On 8 July 2016 the Company loaned $900,000 to Mr Bryan Cook, a Director of Risk and Security Management Ltd (R&S). The loan was secured against 600,000 of Mr Cook’s shares in R&S. On 1 March 2017 the Company accepted Mr Cook’s 600,000 shares in R&S as settlement of the loan, being a total consideration of $600,000. A loss of $334,311 was recognised on the transaction"

Expand

https://hotcopper.com.au/posts/32113315/single

HML Price at posting: $1.99 Sentiment: Sell Disclosure: Held
2 Upvote

1 Great analysis

Reply

Top Stories

Breaking news: New opportunities for investors & companies - HotCopper opens to capital raising!

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

TTT

Titan raises $20M to 'get cracking' at Ecuadorian Dynasty silver-gold project

MAU

Metallurgical work shows gold recovery above 91% for Magnetic's Lady Julie North 4

There are more pages in this discussion • 8 more messages in this thread...

First 29 Last

Add HML (ASX) to my watchlist

It seems to be a theme with these guys, loan money to someone(or...

Top Stories

Breaking news: New opportunities for investors & companies - HotCopper opens to capital raising!

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Titan raises $20M to 'get cracking' at Ecuadorian Dynasty silver-gold project

Metallurgical work shows gold recovery above 91% for Magnetic's Lady Julie North 4

Featured News