Woulfe Mining Corp WFEMF

RE:RE:Woulfe Mining Arranges $350,000 Unsecured Convertible Loan

[Segusmundo]

Can someone explain if this is good news or not?
Read more at https://www.stockhouse.com/companies/bullboard/v.wof/woulfe-mining-corp#8uJGTFxeZ3vcjUYS.99

Hi Pauly- I think this Dundee/Goodman loan is very good news because of its terms:

a) the loan is unsecured and convertible to stock. This suggests to me that Dundee is either confident that Woulfe can repay the loan in cash, or, more likely, that Dundee can acquire something else they consider valuable: more Woulfe stock. Both of these are good omens for the shareholders,

b) the exercise price on the stocks/warrants is at or near the .12 cent range. One of the principal "financing" concerns right now is stock dilution which could drive the Woulfe stock price down in the near future. Dundee, by setting the "loan to stock" convertible price at or near .12 cents (albeit as regulations required them to do) apparently isn't to concerned about a lowered stock price from a dilution; at least not with this $350,000.  If this is true, that is very good news to the shareholders. It sets what Dundee at least now considers a floor price on the Woulfe stock price value. Once again recall, the loan is "unsecured" so, except for the option to convert the loan to stock, Dundee has no "collateral" for the loan in the event of a Woulfe loan default,

c) the interest rate is fair:  12% interest for an unsecured loan with a company with no earnings or reasonably foreseeable earnings is well below a fair market rate and shows continued Dundee confidence in Woulfe's future earning capacity. Frankly, I can't even imagine any reputable financial institution even considering, much less granting Woulfe this "unsecured" loan without a whole lot more good financial information out there (little of which has been publicly shared with the retail stockholders). 

d) 350k sounds like a bridge loan: I suspect this 350k is simply a timed bridge loan to insure Woulfe financial continuity until final financing (likely already arranged, time dated, and cash flowed) comes through, perhaps in conjunction with the IMC loan maturity in February. Absent the likely existence of this long term financing, I can't imagine why Dundee would now elect to otherwise throw 350k of good money away to bad with this unsecured loan.

Good luck to all longs. Seg.