TSXV:HRE.H - Post by User
Post by
Kaliahkon Nov 22, 2017 5:08pm
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Post# 27014904
Does anyone here know...
Does anyone here know......what the terms of the litigation financing arrangement is? The latest MD&A on sedar discloses that the financing company has advanced US$5.66 million, and states:
"The Agreement with the Financer requires repayment of amounts advanced upon final settlement of the arbitration claim. The Financer's fee under the Agreement becomes payable upon a final settlement of the arbitration claim and the value of the Financer's fee is dependent upon a number of variables, including the amounts advanced under the Agreement and the length of time taken to reach a settlement. The Agreement also provides that the amount of the Financer's fee shall not exceed the amount of the aggregate proceeds of the arbitration claim. To the extent that the Company is not successful in the arbitration claim, the Company will not have to repay any amounts which were provided by the Financer."
To my knowledge Stan's has not disclosed what therse percentages may be, and has not had a AGM since september 2015 where such a question can be asked. If anyone has a relationship with David or others at Stan's please find out what these terms are, and let us know. I can understand some generality in disclosure, but no disclosure in this regard makes it impossible to evaluate this stock based upon the expected net recovery.