Consider this agreement and the information, and find out if this is a good deal or not for the company, and why. Set up

[answerhappygod]

Consider this agreement and the information, and find
out if this is a good deal or not for the company, and why. Set up
a timeline of how the payments can be made and how expensive this
loan will be for the Company. What other factors or degree of
factors can make this one;
2: good deal for the company.
2: Bad agreement for the company where the share price drops
considerably.




A company named "Dundar Productions" has entered into a USD
$7,500,000 unsecured convertible loan facility (the "Facility")
with a consortium of institutional lenders (the"Lenders"), to
provide additional funding for the Company's development. The
Facility includes an initial immediate advance of USD$2,500,000
(the “Drawdown”). The Company has the right to draw down up to a
total capital exposure of US$2,500,000 every 4 months from the
Lenders. Each Drawdown has a repayment term of 15 months, of which
the first three months of repayment holiday, and the remaining
twelve of equal principal instalments. The Company shall pay
interest on the outstanding amount of the Facility at the rate of
7,9% per annum (the "Interest Rate"). Under the terms of the
Facility, the Company has issued the Lenders with 7 million shares
(6% of the current number of shares), share purchase warrants (the
"Warrants") to subscribe for the equivalent number of common shares
of no par value in the share capital of the Company ("Common
Shares") at a price of USD$0.55 per Common Share for subscription
at any time, with a 24-month term from the date of issuance, and
subject to the articles of the Company and the terms and conditions
of the Facility. During the term of the Note, the Lenders may, from
time to time, elect to convert varying amounts of Principal and
Interest of the Facility. Half of each Drawdown may be converted at
120% of the relevant Reference Price, and half at 145% of the
relevant Reference Price, the Reference Price being the average of
the 15 daily VWAPs, on the stock exchange, preceding each Drawdown.
The Lenders have trading restrictions meaning they cannot sell more
than 10% of monthly volume for the duration of the Facility. No
conversions will take place for the first 2 months following each
relevant drawdown. Conversions are restricted to no more than 30%
of each Drawdown for the first 4 months. An application will be
made for any Common Shares issued and allotted on exercise of the
Warrants or Conversion to be admitted to the standard segment of
the Financial Conduct Authority to trading on the local stock
exchange. The new Common Shares will rank pari passu in all
respects with the existing common shares of the Company. In
accordance with the terms of the Facility, repayment of each
Drawdown can be made in cash (“Cash Repayment”) for a charge of
2.5% of the relevant Drawdown amount outstanding.
At current time, Dundar Productions is traded at USD $ 0.40 per
share, average daily turnover is USD $ 1,200,000, So average
trading volume is 3 million shares per trading day, and this is
also the average trading volume each trading day.