RE: loan shark????? "They should of went to the local loan shark ...they would of got a better rate... what are they thinking of paying that kind of intrest, structure fee, and shares.... I wonder if they have personal shares in the loan company. In todays market with the intrest rate this loan should be looked at more closley by the watch dogs or fbi..i think this is b.s. and a rip off"
The loan rate is no different than loans in the past. To date, PCY has never had a loan go to term because it was paid off beforehand by a PP. Going forward, and unlike the past, PCY will have freed up NKL shares that it can liquidate to pay off the loan as opposed to solely relying upon equity financing. Not that they will but just to say this option has never existed in the past (ie: NKL shares free up in Jan 2013 that is 6 months or so into the term of the loan).
If you look closely at the loan, services rendered and fee's charged were priced at
.31 per share. Had they been priced at current market prices like most are, we would have incurred an aditional 1.5M shares of dilution. More importantly, the shares issued are subject to a 4 month hold period where most loans like this are free trading once issued (ie: better managed overhang).
The land purchased has no doubt been on PCY's radar for sometime. Until there was a power plant permit, however, it never made sense to acquire the same. If not close to a PPA and or an equity investor (JVP) on the power plant, I doubt PCY would have acted on the property and at this particular moment in time. There's a reason as there always is but all we get are pieces to a puzzle as opposed to the picture of the puzzle.
GLTA