Tis rigor and not law

UPDATED: Colossus (CSI.to): We can safely say Sandstorm doesn’t want to throw any more good money after bad

The 6 month interest payment was set to be around $1.6m, so that’s where we are now with Colossus Minerals: From a company that blows through large sums from equity raises in a matter of months, to a company trying to save on $5m or so in interest payments over the next 13 months that wants the opportunity to raise cash via extremely dilutive equity placements in order to pay down debt. Here’s the NR, here’s the best bit:
As has been previously disclosed, Colossus is in dire financial
circumstances. Colossus believes that the Noteholders’ Resolution is
necessary in order for it to improve its balance sheet in order to raise
the short term equity financing needed to implement the Company’s
de-risking strategy and thereby make it more attractive to future
investors and potential partners to a mergers and acquisitions
Cue Sultans of Swing as background music. What I like is the assumption behind it: “We’ve fucked you over with our woeful project execution, so now the best course of action is to trust us to be the company to bring this project to fruition.” These are very, very stupid people and capitalism should be allowed to run its correct course on their sorry asses; foreclose them and throw them into the street.

UPDATE: That didn’t take long. ARC Fund bites the bullet, the swimming pool dilutive placement is outlined as well as a loan that pays 20% per annum (!!) interest. Details here

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