If the BCSC is legit, it will not allow this type of loan to transpire, leaving shareholders at risk of the loan not being paid and thus all assets going to the CEO.
This should not be allowed. I'm quite surprised this is even happening, as I thought Frank Callaghan believed a lot more in the company being able to pay the loan with security only on production. It seems his drilling company has done quite well in the past drilling for BGM hasn't it?
So what FC and this loan agreement is essentially saying is that all of BGM's assets are only worth $2.44 million.
Something is not right with this scenario, and I plan on contacting the BCSC about this, and would hope that any other true investor here does the same. JMO