For the court’s consideration, the revised value of Aquam has been calculated in
various increments from no delay to 8.5-month delay.
vi) Interest-Bearing Debt
Low deducted $28,046,000 of interest-bearing debt based on a letter from
Gardiner Roberts LLP. Rudson deducted $27,769,000 of interest-bearing debt
based on the financial statements for the period ended March 31, 2017 (difference
Low recently provided additional documentation supporting the debt amount of
$28,046,000. This amount is utilized in the calculations attached hereto.
vii) Financing Costs
Low deducts $1,708,000 of financing costs based on financing fees for both the first
tranche (April 18, 2017) and second, optional tranche (August 4, 2017) of preferred
share financing provided and to be provided by NWCS. Rudson deducts $1,515,000
of financing costs based on the first tranche of financing only. A mid-point adjustment of $97,000 was made.
Financing costs are shown as an “in and out” for the consideration of the court
and the midpoint of the costs for both tranches of the NWCS preferred share
financing is used in determining the adjusted values that deduct financing costs.
Low believes that it is important to note that while the financing costs were calculated based on the NWCS transactions, the deduction relates to the costs of
The revised value of Aquam based on the above adjustments is outlined in Schedule 1 attached and summarized as follows:
Rudso’s “en bloc” value $19, 300,000
Alternate delay periods are illustrated in Schedule 1 attached hereto.