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Will likely be less than 12.5% over 10 years. 12.5% over ten is worst case. Since it is per annum, if they pay down the principal, actual accrued interest will be a smaller number.
PER 8k
Under the terms of this agreement, at closing the Investor will lend us approximately $65 million. The investment will be for a maximum term of 10 years. As consideration, the Investor will receive 45% of Lily Group and a lien on Lily Group’s assets, together with royalties and/or dividends at the rate of 1.25% per annum. We have the right to buy back the equity in Lily Group at the end of any calendar year, on the basis of the fair market valuation of the outstanding.
What is "consideration" in a Business Law perspective slapper?
Answer: Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.
Lily's consideration 45%
Lenders consideration 65 million dollars.
Lender receives their 65 million back, Lily receives their 45%
Is this clear to everyone?
65 million is 45% of what number??? That number is what the lender values the organization at. Just so happens to be $144,444,444.40
Next
Lien: A right given to another by the owner of property to secure a debt, or one created by law in favor of certain creditors.
Regarding: We have the right to buy back the equity in Lily Group at the end of any calendar year.
How about this, We made a shitton of money this year and want to pay off 20 million of our debt right now, without penalty.
Lender: Ok 20 million dollars/current share price = x number of shares. Convert that number of shares back to percentage of initial loan, and that is the percentage of the 45% which would have been returned to Lily Group.
Finally:
royalties and/or dividends at the rate of 1.25% per annum.
65m(.0125)= $812,500 interest and/or dividends(doesn't matter which, still only 1.25% per annum)
$812,500/12 months=$67,708.34/month
Yup! they get 65 million for ten years @ 1.25% per annum
Sweet Deal ehh?
Is this really that difficult?
Any more questions I can help you with please let me know.
Always glad to help
PT
Not true. Pay the loan like any other loan, all talk of "buying back" is irrelevant.
Again, there is no mandate to buy the shares back, its an option, is it not. Once the loan is repaid, where do the shares go then? Back to where they came from, no?
Nobody is attacking anyone ACW. We are simply helping folks who don't understand, understand.We get folks in here all the time trying to twist things around. Its all there in the 8k. I know some of the legal jargon and terms get a little confusing to some. Thats why we are here to help.
Helping comprehension, not attacking.
What are you worried about? I have been watching and researching this company for months. Many others here have been around longer. You are trading penny plays (presumably) that have absolutely no fundamentals, like many of us. You have found VHGI, a company with actual revenue, in the millions, with HUGE $$$$$$$ still in the ground, completely established and functioning mining operation, financing to cover the next decade, and you are where you are....humpf. I dont get it.
Have a look this way: 65m/10= 6.5m principal per year plus interest.
NOW, on ONLY the existing contract, we are looking at about 1m/month in revenue, correct?
Increase production, that number goes up, way up when the new contracts come. And they will, demand for coal will only increase.
Think critically slapper, is paying back the loan gonna be an issue? Secondly,the only time that 45% will come in play, is in the event of default on the terms, again slapper think critically. Do you really think VHGI will default on the terms?
That is the only question you need to answer really.
JMO
Cheers
PT
That IS what the loan agreement states, isn't it?
How is it dilution? Can or will the lender sell any of the 45% on the open market during the life of the loan? The answer is no. Lily is the only entity who can buy them right? Can is the operative word. There is no obligation to buy back at a higher price, its a choice. The other choice, pay the loan back, with interest. Is this really that difficult to understand. Nothing has been given away. Additionally, like others have mentioned, how does anyone expect the company to operate without financing at this point? Wouldn't happen. Careful examination and understanding of the terms is necessary.
Selling under 7...lol
I agree, if we repay the loan within the 10 year term, none of the 45% issue matters right? We just pay 1.5%/royalties. This is a good thing in my assessment.
You will not regret that!
NICE. Action on the way. Maybe we can pull 1m in V today. Get to buying yall.
Damn #7 on most read. Maybe tomorrow we welcome a bunch of new/returning. I'll go ahead and get it out of the way now. Welcome one and all!
I have bought a bunch between .05 and .10
I agree. We will be banging north very soon, but, the waiting is the hardest part...there's even a song about it. Damn folks, this has been a test in patience. Hang tight.
Under 50k at this time of day is odd. Tsunami alert?
Any predictions where this pulls back? First look at this one for me. Musta been under my rock too long
The fuse is lit folks. hehehe
$VHGI$ money train. All aboard!
Indeed a good write up. It's been a few. This week is shaping up nicely. I am not even gonna speculate, but i feel good again. Anxious. Feels like the ole days lol
Welcome BigMoney and all the new folks coming in. Glad to have you. Feel free to shoot questions about VHGI and help yourselves to the DD.
Cheers
PT
Welcome BigMoney and all the new folks coming in. Glad to have you. Feel free to shoot questions about VHGI and help yourselves to the DD.
Cheers
PT
My 2 cents, we have strong support @ .055-.06 here is the spot to get in if you aren't in yet. Haven't been south of this support for quite a spell! Welcome to VHGI. Enjoy.
PT
That is a hard question to answer at this point. But, if u wait, you will pay a bunch. The company is generating revenue. This, to me is most important. Actual profitability will take a bit, but when they are making $, paying salaries, bills, etc...good schit baby. This is what will brings the investments. This is happening now, there just hasn't been the publicity yet. It will come..but never quick enough lol. Good days are near, very near.
All my opinion of course.
PT
I think I read low to mid $30 range for profit per ton, but I can't remember where. Don't quote me on that.
Happy Friday Yall, enjoy the weekend .063 I'll take it. Off to do a lil phishtrickin!
Cheers
PT
I dont understand what I am seeing on L2. PERT is back @ .065
no one anymore ETRF 50K @ .10 lets hope they stay there.
we got some volume comming in, almost 60k bought in the last 5 minutes
This is fun, I can finally watch L2 and something is happening
PERT is up at .125 BAMMM 50k @.10
It is getting chompled.
12.3 @ .062 the its .091
almost 110k bought @ .06 in the last 5 minutes or so
I have been watching for months, one thing is constant, pps falling to .0000
But the owners are pocketing the profit. AO is making millions, and not reporting any income. Funny thing, they are paying taxes in CO, but ERBB is still not making money. Easy to see what's going on, at least it should be.
Congrats to those who have been hangin on with faith. Takes some profits yo!
Article on duke.
http://www.midwestenergynews.com/2013/01/23/betting-on-indiana-coal-duke-wants-ratepayers-to-fund-retrofits-environmentalists-cry-foul/
Coal ain't going away anytime soon.
Good Morning all from Cali. Come on train, let's keep rolling. Bring us happy, happy, happy.
$VHGI$
Wealthy painters to boot.