Providence Resources - Re: PVR Stream Log - I see people saying that...

I see people saying that this fund raising will keep them going for 1-2 years and such but I was under the impression that this fund raising was to pay off the $24 million of 10% loan notes that come due in 2 months time. Since these loans were drawn they have become 20% more expensive due to currency changes. It's expected that the dollar will further strengthen so this loan should not be rolled over or further losses will be incurred. This means they recently raised a total of $28 million( They wanted $30+). $24 million goes to repay the loan notes plus another $2.4 million in an interest payment. That's 26.4 million. Then they also have to pay the $6 million due at the end of March to Transocean. This leaves them with not enough cash to fund their capital commitments for the next year unless they can get more new loans at interest rates of 10%+