Why wouldnt they go down the KGL path. Combination of new equity and debt. Im sure they will need to contribute a decent chunk via equity, nobody would stump up 100% in con note.
But if they can bed down some equity, then their are banks willing to fund debt portion. Not easy to do con note at huge premium. So equity/debt is the more like outcome imo.
If the performance shares require atleast $2mil of new equity above 50c, you can bet your house on it that management are aiming at getting sp to 50c, raising half the required amount then using debt for the rest.
Would create more shares on issue but leave alot of upside. Its an interesting project with interesting short timeframe with only 3month option.
ROS Price at posting:
35.0¢ Sentiment: None Disclosure: Not Held
