OK HC, are you going to dip in and throw more $'s at SXX,...

OK HC, are you going to dip in and throw more $'s at SXX,
Personally I reckon Boris has outsmarted them again. Absolutely. Hate to say it.

Setting aside the rights and wrongs and morals etc.... (it is certainly legal)

Like a card game. It is now (partly!) a game of whoever has the deepest pockets wins.

You need to look closely at how it is all structured and as I hold no shares, I will leave that to you.

I have no financial interest, but as an exercise in corporate battling it is very instructive.!! one learns.
If I was Boris I would certainly have done a raising and had a battle of the deepest pockets.

But the master stroke is to use shareholder money to indirectly deliver voting-shares into your own friendly camp... through paying off a debt.

I would take my hat off to him, if I had one.

Firstly the Noble Boys and "friends" need to stump up somehow more than $1,000,000 to hold their % ownership, but even then that is not entirely true. (Would anyone voluntarily, as a good investment, put money in sxx?)

I use the term "friends" with care as how many friends they will have after this turn of corporate events is debateable.

So the money ($2.484m presumably) comes into SXX from the issue and $1.57m cash goes out the door to Longreach. $238,000 also goes out the door wasted in unproductive fees. So Longreach which is sick anyway is helped, but then in return has to commit part of this lovely cash to converting it into SXX paper because it has undertaken to. (Instead of the asset "account receivable" it holds an asset, SXX shares. A swap. or partly)

So effectively major cash from shareholders flows into SXX, then into Longreach (a member of the Ganke camp). You use SXX company money to pay off a debt, and the grateful creditor agrees to sub-underwrite using the money you provided him with... courtesy of SXX shareholders generosity of course.

The cruel and ironic part is that a major part of the money subscribed by the Noble Boys, finds its way into buying shares whose voting rights are delivered into the enemy camp. If that is not twisting the knife I do not know what is.

The icing on the cake is that the less shareholders take it up, the more leveraged is the delivery of shares to Longreach I suspect.

One could go into it in more depth, but that is my take on it. At first glance and very superficial. No doubt there is infinitely more to it.

How much of the money is actually put to Real Work earning income? Well... notionally only a miserable $100,000 to help mine uranium and make a buck.. maybe.

It is certainly fascinating to watch.... like a gladiator fight. No fun being a shareholder and in the arena too though..