Vanadium One Iron Corp. VDMRF

Eric

[shawshank2]

My final question is what do you think of the secured financing. Debentures were secured by assets of vanadium one...and repayable in 18 months. How does the company expect to pay this back is my concern?

[EricQC]

Hi Shawshank, I think the debt financing was a good thing as it limited dilution for Shareholders. VONE will not be generating any cash flows before the debenture matures. Both VONE and the creditor knows this so it will most likely be repaid through a separate round of financing (with the same party or not) of either debt or equity issuance.  This obviously assumes that they will have

[shawshank2]

. Hi Eric my understanding is that it is a non convertible debentures. Also there was almost 10 million warrants issued which is only a few million less than if they just raised the money through a normal pp etc so still dilution if I read it right. So my understanding on debentures is that if they can not pay it back in 18 months the issueers would have claim on the asset

[EricQC]

You are absolutely correct. The debentures are non-convertible. My bad. Regarding the warrants, the ones issued to the debtholders are exercisable at $0.42/share so if they are exercised, it means the stock will have appreciated by at least 68% from Friday's closing price. So although there will be dilution under this scenario, the market cap appreciation in my opinion will outweigh the

[shawshank2]

Thanks!

[DarkGreen]

what if the share price is $1.00 or more next year , do a financing and pay back the loan at 40 cents on the dollar ,not bad in my eyes . All signals are showing that fe prices aren't going down . Another fact we forget is that vanadium prices are on the rise and these redox flow batteries are going to stimulate an incredible demand for vanadium which I might add that VONE has a pile of .