Unique Logistics International Inc (UNQL)

[LJ-Bodhi]

I'm curious what the plan is if the terms of the Colbeck $25m financing includes more convertible notes. Anyone can read this concise, clear article which explains exactly what Trillium did to UNQL:

https://investmentbank.com/death-spiral/

My prediction is that Colbeck has set up the same scheme. No bank would EVER loan UNQL $25m. (TBK is a secured invoice debt facility.) UNQL couldn't even get $1m loans without convertible note financing through Trillium and 3a Capital. Those sharks got 25% of the company for $3.9m while Trillium made millions more selling hundreds of millions of converted shares to drive the price down while at the same time shorting and profiting more. History will repeat itself.

Because here's the alternative. Colbeck hypothetically actually gives UNQL $25m. Let's say 10% interest and a 10 year repayment. Here's the amortization calculator:

https://www.bankrate.com/mortgages/amortization-calculator/

That would be $4m a year in payments to total $14.5m in interest over 10 years. Don't forget, UNQL lost a million 3 years ago, made $1.7m 2 years ago, and lost another million last year. They should have no problem repaying $4m, no matter what, year after year after year. Yeah, sure.....

Death Spiral Toxic Financing is on the horizon. Don't say no one gave fair warning.