Totally agree that the funds this opens up to them ($250k every 60 days) would be completely inappropriate for a company with 2 assets in a bit of a holding pattern. Let's hope this implies they are close to landing something interesting.
As to the loan size, sorry, but as of today they do NOT have a 4m loan. They have a facility that could reach that size in 3 years if they draw down at every opportunity. As of today they owe $125k under this facility. Sure that will grow, but we know the max rate it'll grow at. It would, in my view, be quite wrong to use $4m if you were doing an EV calculation today.
Let's hope the drawdown profile is for proper development work (old and new assets) and not simply corporate maintenance stuff.
QFY Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
