CMM Valuation - Finance Approval vs Takeover offer, page-31

I think Hawkes Point have their hands full at the moment. This is from EGS which last traded at 11.5 c before voluntary suspension. Some selective cut and pastes


ASX ANNOUNCEMENT 31 January 2018

"Eastern Goldfields Limited (ASX:EGS) (Eastern Goldfields or the Company) is pleased to announce that, following its announcement on 9 November 2017 and its general meeting held on 4 January 2018, it has entered into a subscription agreement (Subscription Agreement) with Hawke’s Point Holdings L.P. (Hawke’s Point) pursuant to which Hawke’s Point has agreed to subscribe for 87,500,000 Shares in the Company at a price of $0.20 per Share, for an aggregate subscription amount of $17.5 million".


ASX ANNOUNCEMENT 28 SEPTEMBER 2018

"SYNDICATED FACILITIES AGREEMENT AND INTERIM FINANCING As announced by the Company on 29 August 2018, Hawke’s Point Holdings I Limited (Hawke’s Point) agreed to acquire debt owing by the Company under its syndicated facilities agreement with Investec Australia Limited (Investec) (Syndicated Facilities Agreement) by agreeing to: a) purchase the outstanding debt owed by the Company to Investec; and b) acquire an assignment of the Syndicated Facilities Agreement and the associated security documents from Investec. The Company has entered into binding agreements with Hawke’s Point and other lenders (the Noteholders) to issue 87,500 Loan Notes to the Noteholders to raise $8.75 million (before costs) (the Loan Notes). The Company expects to issue the Loan Notes shortly. The Loan Notes are secured debt instruments of the Company (comprising a loan from the relevant Noteholder to the Company) and do not carry any rights to conversion into Shares until receipt of Shareholder approval at an extraordinary general meeting of the Company, proposed to be held in November 2018. Following the receipt of the required approval, the Loan Notes will become convertible into ordinary shares in the capital of the Company (Conversion Shares) in accordance with their terms".

"At the same time as the conversion of the Loan Notes, all or substantially all of the outstanding amount under the Syndicated Facilities Agreement will be converted to equity on the same terms as the conversion of the Loan Notes. Hawke’s Point has agreed to provide a further standstill in relation to its rights under the Syndicated Facilities Agreement and the associated security documents until the completion of the Placement. The Loan Notes and any amounts converted under the Syndicated Facilities Agreement will be converted to ordinary shares in the capital of the Company (Conversion Shares) at a price of $0.05 with a corresponding 1 for 4 free attaching unlisted option to acquire a Share (Conversion Option). Each Conversion Option will entitle the holder to subscribe for one Share at an exercise price of $0.075 per Conversion Option. The Conversion Options expire on the date that is 4 years from the date of the completion of the Placement".

Notes are at 8 % per anum. I am not sure the implications for them accepting not accepting the RRL offer but they do not appear to be doing well over at EGS ...