carbonmanRegarding shorting GGX all I will say is that with no...

carbonman

Regarding shorting GGX all I will say is that with no merger they are very low on funds to meet their committments. they were relying on the merger. In the half Yearly it says that they have entered a $500k loan agreement to stay viable and if the merger does not proceed they will have to raise funds. What at 2 cents????? The last placement was for 21m shares at 5 cents and raised just over $1m .. those guys will be happy to see another one!

Extract from half Yearly:
"The Company is dependent on ongoing availability of new capital to fund its exploration activities. The
implementation of the proposed merger by Schemes of Arrangement with Orion Petroleum Limited will
among satisfying other objectives provide the necessary funds to the Company for the next twelve months.
Implementation of the Schemes of Arrangement is subject to shareholder and optionholder approvals (at
meetings to be held on 24 February 2010) and after obtaining those approvals, Court approval on 3 March
2010.
At balance date the Group had 'Cash and Cash Equivalents' of $968,425 and current 'Trade and Other
Receivables' of $161,337 which in total exceed the current 'Trade and Other Payables' of $ 598,782 by
$530,980. In addition the Company has entered into a loan agreement in January 2010 providing a facility to
draw up to $ 500,000 until 30 June 2010 for working capital requirements. If the requisite approvals for the
Schemes of Arrangement are not obtained, the Company will need to raise new equity capital to fund its
operations. The directors are confident the schemes of arrangement are in the best interests of both the
Company and Orion Petroleum Limited shareholders and therefore should be approved."

H