GREY:TSTIF - Post by User
Comment by
newdanton Jun 19, 2019 2:39pm
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Post# 29841021
RE:courage capital 13f
RE:courage capital 13fI do appreciate all of your posts StocksFTB but FYI the 5M term loan matures Aug 1st 2023 and TOS has all manner of options to defer both principal payback and interest until that date.
Options include issuing stock as payment - so dilution for existing shareholders - and some level of deferring and accruing larger interest debts at maturity.
A pretty expensive financing to be sure and if TOS raises funds at any price below the conversion price on the 15M CD (I think 0.80 cent USD or say $1.05 CAN) then Courage is protected from this downside risk as conversion price is lowered, but unfortunately this added dilution risk is magnified accordingly and passed on to existing 'ordinary' shareholders. :-(
We need the team to deliver on sales in time to insure that no additional financing occurs, and preferably if there is one its very small and hopefully well above the conversion price.
And again that requires visability on sales. Hoping we get some positive news on the regulatory side soon.
Echelon still forcasting TOS cash will take them well into next year but there is a 5M liquidity covenant in the Courage agreement so not sure how that squares with Echelon's forecast?