there is so much to dislike about this loan. just for a start:...

there is so much to dislike about this loan.

just for a start:

BBSW currently about 2% p/a on 3mth rate + 2% margin = loan rate of about 4% p/a.
rate will change qtrly over term of loan.
$33m x 4% = interest of $1.32m p/a
over 3 yrs = about $4m flat.

but interest is capitalised
so interest must compound.
probably added to loan principal every new rate set - so every Qtr.

So that $33m + $4m interest will probably mean principal owing at end of 3yr term will be about $37.5m

of course, that $4.5m in interest incurred by FMS is way, way more beneficial for FMS, than the $250,000 p/a incurred in Listing Fees and Admin - NOT.

so for FMS to say loan is only $32.9m is misleading, because debt owed to Todd at end of term will be close to $37.5m.

of course, FMS has not provided any basis for s/h to have confidence that FMS will be in a position to repay that loan.
in order for Directors not to become personally liable for this debt, they must be of the view that lFMS will be able to repay loan at term - ie they MUST already have a plan in place.

so just what deal have they arranged, that they are not advising shareholders and the mkt?