Bedrocan Cannabis Corp. V.BED

4 million in loans @ 10%

[cobills]

It seems to me that $400,000/yr in interest expense is rather expensive IMHO.

[clm128]

I agree, it seems to be in line with some pre license companies that have taken debt. I would have thought we could get a slightly better rate. Im glad management put up their own money I just hope there not taking advantage of their positions to pay them selves a higher than needed rate. All said and done I still prefer this to an equity issue, at least interest is a claim able expense. Cheers

[DariusDD]

Yes, 10% is a little high but this is way better than dilution like you say.  Management putting up their own $ is a best case scenario and speaks to the confidence they have in Bedrocan.  In the end it is going to be good for all of us.

[Roxy27]

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

[frankie1122]

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