Neo Performance Materials Inc NOPMF

Hastings in big pain

[templetooth2]

from my CEO post:

Wow! So two years ago, Hastings was over Aus$4 per share and financed the Neo share purchase with a convertible deb. with a coupon of "Bank Bill Swap Rate" plus approx 5 basis points (BBSY) plus 9%. From what I can see, they must be paying about 13.35%. These debs appear to be convertible at Aus$5.50 per share and mature August 2025 unless there's some fine print I'm missing. Currently, Hastings trades at Aus $0.26. Obviously, this busted convertible is likely to lead to Wyloo owning the Neo position or control of Hastings.

[spesestsemper]

Is there any chance that hastings has to dump their shares ?

[templetooth2]

You would have to read the trust indenture to find out the particulars. Under ordinary circumstances, the shares would be pledged to Wyloo as collateral for the loan. If for whatever reason HAS were to sell the shares, you would expect the debenture to be immediately payable. As HAS has zippo funds on hand ( I expect given share price) that would be corporate suicide.  So under ordinary

[spesestsemper]

Thats why i was wondering if maybe they had to dump some to raise funds , thanks for clearing that up .