Axiom 2014 Annual Report - page 65

Notes to the Financial Statements
for the year ended 30 September 2014
63
2014 Annual Report
13. Borrowings
2014
$000
2013
$000
Convertible note
678
–
Other borrowings
8
20
686
20
Convertible notes
On 7 February 2014, the Company arranged a two year partly secured convertible note facility of $650,000 with a face
value of $700,000 interest bearing at 10%.
The notes convert into ordinary shares at the election of the note holder:
a. On the expiry date; or
b. At any time prior to the expiry date, by service on the issuer of a written notice of conversion of the note given by the
note holder; or
c. On redemption of the note if the convertible note facility is cancelled by the issuer in accordance with the convertible
note facility agreement.
The issue price is 7 tenths of a cent per share with an anti-dilution provision. The issue included a commencement
fee of $112,500 settled by way of issuance of 7,956,153 ordinary shares to the investor and partially secured by issue of
15,000,000 shares held as collateral security. The Company also issued 13,250,000 options to the note holder.
14. Capitalised lease liabilities
On 22 February 2011 the Group through its subsidiary Axiom KB Limited entered into a long term lease agreement
(50 years) over land on Santa Isabel Island in the Solomon Islands. As at 30 September 2014, the Group had obligations
under the finance lease as follows:
2014
2013
Present
value of the
minimum
lease
payments
$000
Total
minimum
lease
payments
$000
Present
value of the
minimum
lease
payments
$000
Total
minimum
lease
payments
$000
Within one year
377
436
714
956
After one year but within five years
363
698
375
1,293
After five years
1,595
7,194
772
5,460
1,958
7,892
1,147
6,753
2,335
8,328
1,861
7,709
Less: total interest expenses
–
(5,993)
–
(5,848)
2,335
2,335
1,861
1,861
GROUP FINANCIAL REPORT
1...,55,56,57,58,59,60,61,62,63,64 66,67,68,69,70,71,72,73,74,75,...116
Powered by FlippingBook