Bootstrapped leveraged finance repaid from future success - just requires the company to purchase assets worth a lot much more than they cost, so they can be liquidated to pay off the loan. I wonder what idiot is putting up the "collateral" to back the initial loan until Qasp completes the acquisitions.
Oh, QASP is just buying 51% of the stock of the heli-parts company, so the only asset it has is common shares -- not the inventory. Ditto for Mineseeker - just shares of an illiquid private company with next to no assets/revenue. Oh, and operating losses.
What collateral is created with the cash spent to buyback shares or fees to brokers, lawyers, accountants, PR firms, bonuses to management, etc.
What collateral is created from the R&D money spent for the new engine or pontoon plane development.
Also, how about the interest on the highly highly leveraged loan. This is a pay-day loan for QASP, so someone should be getting junkbond yields -- whether the bank that thinks it has a SLOC or the trust-me company that thinks it has AAA collateral or the person who provided the collateral.
Newby has now proven this will fail.