Actually I was pretty comfortable with 2%, at the time at least, as the time frame for completion of the deal was so short, at that stage $200k seemed a reasonable amount in exchange for the risk of the deal falling through 2 weeks later. Trouble is GMC have let this play out way too long and now of course that $200k is worth nothing. If my memory serves me then early October was the first firm deadline Pak had to transfer the funds (remember the initial date was set at ?7 days after receiving local approval for the project). Of course when they did that some small "amendments were made to the term sheet, in any case the next "firm" date for funding was 21 days from the 15th November ann although even this reads a bit rubbery now, did Pak even sign this one? This is old news but look at the SP movement since these two "dates". Since then we've had a 100% and 40% increase in the SP respectively and that is what concerns me the most. Had the deal been allowed to fall through in the first place little damage would have been done to the SP, we'd have more cash and more time to look for another deal. GMC's biggest failing here is that they didn't control the process in any way and have allowed Pak M. to play them like a fiddle. They've allowed the SP to appreciate beyond a SP that reflects the new risk, they should have either terminated the deal around november or secured a further, larger deposit each and every time the deal required "re-negotiation". I got in early enough that I'm unlikely to loose money, I still think the coy will have worth but it'll hit my capital hard none-the-less. What concerns me more is what will happen to those who have bought in since the anns, and as we've seen with the trading volume there will be many underwater, with likely large sums of capital tied up in them.
Two more days for Pak M. to pay up? That seemed odd, It actually gives me some hope, they had a deadline on the 16th, why another one? I don't think GMC are that silly. As long as they aren't stripping the coy as we speak AZZ style. Surely not.
GMC Price at posting:
4.2¢ Sentiment: Hold Disclosure: Held
