RE:How does an interest free loan become a contribution Margin321 wrote:
The have 16 months before payments start and that is worth quite a bit, but it is not exactly an investment in the company in the usual sense.
It is worth $240k through May 2025 and then another $520 k over the 5 years of the payoff, assuming the interest would be 6.5% rather than zero. It is probably worth double that to RHC because they could not borrow more money right now at any interest rate.
Margin321, thanks for doing the homework on the precise contribution. Alberta and Saskatchewan could both be assisting a developing economic activity with some type of contribution as well, but are likely focused on playing politics at this time.