Regent Ventures Ltd RGVNF

RE: RE: RE: RE: Thoughts on PR

[tradingsteve]

dogone.......looking at the news release (and I admit I'm late to the game and have no position in this company as yet) I see the $1M loan as potentially very favourable to the investors, regardless of the outcome of drilling, for the following reasons:


the $1M comes from 2 individuals who are "arms length parties".......this means they have a relationship (family/personal) with the company and/or its BoD

the $1M can be converted into shares at the lenders election......they can do this at any time, IE just before great drill results are announced....if they are there

the $1M carries 8% interest and matures in 1 year....$80,000 on a straight line interest claculation, which is paid monthly = $6,666.66 montly.....not a bad return on investment

finally....I would assume that these creditors (as with all creditors) are given preferential (or priority) security on the assets of the company in the event of default.....depending on the list of preferred creditors and where specifically these "arms length parties rank", there may be very little risk to this investment


all comments are welcome, as I am intrigued by this stock, but unmotivated to get in at this time