Financing at 45% ? This loan better be prepayable or we just gave away potentially a huge wad of cash. Here's my numbers. we can assume no significant MCC sales except for canine.
I am assuming that the 15% interest rate is annualized, rather than over the 5yr term.
Loan interest: = 15% x 5 yrs = 3.0m x 5 = 15mil
plus
Annual revenue x 2% over 5 yrs = (30m x .02 x 5) = 3.0 m
plus lets assume that GM is actually thruthful and we start decreasing the burn rate of 1 m / month. That must include a big increase in revenue. Lets say they manage it by 75% revenue increase and 25% cut in expenses(lol)
that would make the revenue increase for say the last 40 months from late 2013 equal (40 x .75m) x.02 for royalty = another 0.6 mill
That equals an interest total of 18.6 m (almost the whole loan)
But what if Econiche sales arise as expected (say 75%) production from 2013 or 30 million doses with a revenue of $8 per dose = 240m x 2% x 5 yrs = 24 mil
So we could potentially be paying out around 40-45 mill or 40-45% annualized.
I hope SEDAR or someone else here proves me wrong, or this deal stinks.