Alex
First of all, the ST Loan agreement from NR Oct 6:
Company's Financial Position
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On September 21, 2004, we were advised that Dimethaid had about $240,000 in cash available and current liabilities of approximately $10.7 million Cdn. Dimethaid senior management was not aware of any firm financing in place to deal with the situation. Obviously, raising funds for the company's short- and longer-term requirements is the new board's first priority.
Short-Term Loan
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To meet immediate cash requirements, Dr. F.W. Kuhne - former principal of Oxo Chemie, now Dimethaid AG - has agreed to provide Dimethaid with a short-term loan funded by the sale of Dimethaid shares paid to him as part of the Oxo Chemie acquisition agreement. The transaction has been approved by the
Toronto Stock Exchange, and the shares will be sold at prevailing market price. The loan will come due in three months and bear interest at a rate of 6 percent per annum. Dr. Kuhne may, at his option, elect to have all of the principal repaid through the issuance of the same number of Dimethaid common shares he sold to finance the loan. A maximum of one million common shares can be issued to Dr. Kuhne as repayment.
The Nov 5th admended agreement:
1. principle repaid by shares, not cash
2. formula for differential paid in cash and installment
repayment terms
I was wondering if you know at what price he can sell his stock?
It may not matter what single price Dr Kuhne's shares were sold for. I am guessing and assume that 1mm shares (Dr Kuhne shares and theoretically could be less than 1mm shares) were sold at an average of $ 0.674 per share recently. Thus raising $674K.
The initial agreement says the repayment is an equal amount of shares replaced. This changed. I assume and interpret that on repayment date, if the DMX price is less than .674 then DMX will kick-in the cash differential. The next case is not clear, but if the price is above .674 then I assume less shares maybe issued to equal principle amount.
Fire away with questions to me or people on this board. We exist here for this reason.
PS If Pennsaid gets approval I can see the stock going up.
When Pennsaid get US FDA approval, the stock will go ballistic. |
