Trex: Sorry, I don't buy it.
Don't get me wrong, I sincerely hope that the funding package comes through. However, I don't buy the idea that the deal is done, but the money just hasn't changed hands. In fact, that statement itself is inconsistent.
In order to have a deal, you have to have a contract. A contract consists of three basic elements:
Competent parties - that is, parties that are capable of actually doing what they say they can do. More about this in a minute.
Meeting of the minds - Both parties must agree on the terms of the contract.
Consideration - both parties must come away from the contract with something.
First off, without consideration ($6,000,000 in cash in an NVEI account) there is no contract and hence no deal. There may well be a proposal but there is no deal. In fact, see what the RAQ says:
We have not yet closed the deal, but we are cautiously optimistic that we will.
So, no deal yet. Just a proposal.
Now, let's look at the competent parties part. It looks like the proposal is between Mercatus and NVEI, but it is not clear that Mercatus is a competent party. Look at the RAQ again:
We understand that Mercatus is making loans similar to ours to a group of companies that it has presented to a consortium of banks that are to fund the Mercatus loans.
It looks like Mercatus is taking or has taken the proposal, which includes our loan among several others, to a consortium of banks who have not yet approved the deal. Will they? Maybe, but the RAQ clearly states that the banks are to fund the loans - not have funded the loans. Look at the World Am deal. The funding that was announced in January through Mercatus still has not materialized, and it is not clear that it ever will.
I advise caution on considering this to be a done deal. It is anything but.
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