re: Ann: Letter to foreign shareholders re Ri...
Cannot help you there HC..... do not know the answer. BUT...
Maybe you would care to look at the other scenario where nobody subscribes to the SXX issue.
It is an academic exercise... something for an MBA class assignment.
I mean Boris can actually TEACH people, myself included, how to deal with situations. Setting aside the emotions and humour... the intriguing part of wheeling and dealing in share shuffling.
(...not that the Noble Boys see much humour I suppose).
Defensive plays etc. How to do them. It is like going to a Free seminar on defensive plays, given by Boris. See how it is done. And in this case it is a free seminar too. :)
Defensive Plays 101 Lecturer Dr. B. Ganke. Lecture Theatre E19
The Mum and Dad shareholders don't front up with their cheques. Noble Boys sit on their hands, figuring if they really want shares they can stand in the market later at 0.08 or 0.05 and get more anyhow. Ganke camp sit on their hands too, mostly. I mean who really wants to pay 1.2c
So in the end LGO get SXX paper, which has some small value, in exchange for a bad debt that clearly would never be paid by SXX. So it is a positive for them.
A serious monetary debt on the SXX books is extinguished in exchange for SXX paper. Good for SXX
The threat of LGO ever calling in the administrators to sell up SXX to get their money is removed, not that it was a Real threat anyway... but I am talking academically here. If LGO was an arm's length entity.
LGO underwriting... 84.5% and max committment of $2.1m etc... I would really like to know the nuts and bolts of how this figure is derived. Clearly there is no intention that LGO actually passes cash to SXX ! Heaven forbid! Does part of a sub-underwriting fee go to LGO? which in turn is exchanged for SXX shares. ?
As in Alice in Wonderland... ’Curiouser and curiouser!’ cried Alice (she was so much surprised, that for the moment she quite forgot how to speak good English).
Step right up MBA students... Dr. Ganke's lecture is about to start.... :))
SXX Price at posting:
1.0¢ Sentiment: Sell Disclosure: Not Held
