TSXV:SQD.H - Post by User
Comment by
25Stone7859on Mar 02, 2023 4:35pm
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Post# 35316075
RE:RE:Updates
RE:RE:Updates Doing the right thing.....I agree, but I can only hope so.
A bright and astute group. I think so but let's look at the worst case scenario, being default.
The $7.5 M Pivot financing is only 50% Pivot or $3.75 M. The balance I understand is split amongst the three insiders @ $1.25 M each. All at 15% interest.
And this $7.5M Pivot "et al" financing has a "first charge" against the company which I think means they own all of the assets in case of default and shareholders get zero, assuming nobody is interested in any of the assets and willing to pay more than the debt. This seems plausible because SQI has been working on fixing the money problem for a year or more with no so called "term sheets" from anyone.
The existing debentures which are also owned by the three insiders totalling $6.5M will get nothing. However, their 50% stake in the Pivot deal keeps them in the game.
Hopefully this does not happen. The three insiders have committed enormous sums to keep the enterprise going and they should be applauded accordingly. Maybe Clariti will come through.
SQI at $0.02.... hard to accept.