RE:RE:RE:RE:preferred shares proposal RCG certainly does not look like a reliable customer for many of the small businesses that it did business with.
Good question. Why would a lender risk $20M ?
Perhaps Sprott. Sprott had $8M of 30c warrants that expired worthless in October 2018. And the question would still have been the same. Why would he risk $8M ? The business risks and cash required are the same. Bulk sampling complete. Cash owning. Cash required.
The 30c warrants did not pan out. Too high too early perhaps. Hence the preferred shares idea. Just an idea.
I chose $20M because that is how many tax-loss credits that might be available.
It is coincidently the amount claimed. ( 6% interest was an arbitrary idea )
Would Sprott double down at a 7.5c book ? 20% of the company has been suggested as his limit. Suggesting he will need other partners. dunno. Appears to be speculation from my chair.
as kenmar wrote:
....we will see if Sprott is the saver again.