UXA have as part of loans of $3,055,000 a loan of $2,200,000 with N.A.B. This loan is set up on the basis of: EBITDA/Interest+ principal paid/debt service cover ratio and is set at not less than 2.5. As UXA breached the loan agreement and received no waiver in the previous quarter the debt becomes a 'current liability'. This breach was due to the sums required in purchasing Geoscience and PFN Tool and further acerbated by poor weather conditions and flooding concerning exploration and trading by Geoscience.
UXA have raised $750,000 in a placing and aim to raise $2 million in a sale of new shares to shareholders up to 5/11/2010.
Due to publicity and unusual trading in UXA stock, partly due to share purchases by China West, the current cash raising may well exceed $2 million and maybe the company will accept stock purchases well above this.
UXA Price at posting:
4.3¢ Sentiment: ST Buy Disclosure: Held
