MMEX doesn't have any assets to collateralize ?a loan for $50, $500 or $850 million dollars.
When a company is forced to use a toxic lender to borrow $145,000 - the financial health of the company is in distress.
If you think 120 acres valued at $1200 per acre and a air permit for a CDU is going to suffice as collateral for a $50 million loan - that is just wishful thinking.
MMEX doesn't have any revenue or assets - how will they service the loan?
Typically a mezzanine lender will take equity and the company will have to pay interest on the loan for 2 to 3 years - then repay the loan.
But the lender wants the company to have demonstrated a successful track record in the business and Hanks doesn't have even a adequate track record and they generally want the company to be profitable.
The Pre-revenue BS doesn't work in the energy sector.
Generally for a $100 million loan - Hanks would have to find Senior lenders for $70 million and the mezzanine lender would provide would provide $10 million and the other $20 million would come from Private Equity.
Why guess at a price contingent on Hanks getting the financing - because it isn't going to happen.
I believe in reality based investing - not hoping and wishful thinking.
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