Why So Many Related Party Convertible Debt Transactions?How is it that ILC gets away with doing convertible debt transactions every few months that pay 15% interest rates and give the lender huge upside converting to stock at 14 cents? Effectively much of the company's working capital is being siphoned off into high interest debt - paid to insiders in the company - and then if they have any major exploration success they get to further dilute us and take upside on the stock.
My guess is that if you shopped this deal they could get convertible debt from an unrelated entity at 10%. How is it that Canadian law allows companies to do these kinds of transactions?