RE:RE:RE:4 million in loans @ 10%In my experience, 10% is a reasonable rate for short term private debt.
If this was sourced though a dealer as a debenture it would be at least 8% and cost 6%+ placement fee.
As a convertable the coupon would be 6-7% minimum plus a discounted convert and equity dilution (plus the 6%+ placement fee).
An equity raise would be dilutive, be a discount to market value and again cost 6%+ placement fee.
I just added a position yesterday with the belief that this has reasonable potential to double based on mgm't track record and how they are postioned in the market.
In a few years, when consolidation occurs I believe this company will be a surviver. Their existing facilities can handle 20%+ of the market demand.
Good luck