How anyone can think this was a good deal is astounding. Essentially NB must get financed very, very soon or Yorkville note holders will have them over a barrel.
Default, then notes are due immediately and go to 18% interest per annum.
Deal highlights:
Borrow $8mm and get only $6.96mm. That’s fat fees and a form of pre-paid interest looks like. These notes convert at $2.75/sh.
Looks like $1.4mm/mo payments starting June 1, excluding August.
Unless “equity conditions permit”. Which is trading at $3.30 or above (120% of $2.75) in the last 5 days of each month. They also must have at least $500,000 dollars of trading volume on each of those days.
Plus it gets even better. Inspite of userous terms they get 615,385 warrants for the privalege of screwing Niocorp shareholders because of management incompetance.
They are betting the farm that someone better than Yorkville appears shortly. And they are paying Yorkville note holders hugely for the ante.
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