George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Medjed, I should have said in worst case they won't lose anything. Most likely they will do better than break even if it goes bust, a few 10's of million profit maybe. They obviously win big time if it is sold for your 200 million and anyone who bought in the last month will do ok as well. I guess it depends on if this 200 million valuation is realistic. We have no idea what was discussed as part of JV so are only guessing at valuations
"Then its game over for them too, they still hold 24.5% Anavio and 24.5% the other single entity"
Anavio have already got most of their money back from converted bonds and bond interest payments. If the asset is sold they will most likely get something back from that so they won't lose anything. The asset is apparently not worth $135 mill according to our honest and esteemed BOD but if in the future you think someone will make an offer of a few hundred million then Anavio will convert to own over 90% of the company so they will win big time. The game is not over for Anavio, they win every way. Great bond deal!
Sharebel you say "why our foes went to all of the trouble to play this game - money and big profits".
Problem is the game has already been played and it is game over now. What specific scenario do you see happening to return any value to shareholders?
"Yes, and why no RNA to say they do not know of a reason for the drop?"
Everyone knows the reason for the drop. Bondholders forward sell shares and then a vwap conversion appears. Rinse and repeat. Pity our experienced leaders didn't notice this and the damage it was doing or they wouldn't have went back time and again to lower the conversion price. Does anyone here believe this was incompetence. I don't think any 'reasonable person' would believe that either if it came to a civil trial.
Technically they didn't sit back and watch peoples lives ruined, they were working very hard to ensure those lives were ruined so they have done a tremendous job. I think the term for these people are greedy, immoral sociopaths.
Tosca didn't buy any shares. 1 billion shares were created and given to them for bond interest on previously converted bonds. They are now trying to sell them into a market creaking under an avalanche of bond conversion shares. The sp is only going one way now
"No one knows. You could ask why are people selling this"
Because it is very likely to go bust in the very near future and shareholders will get nothing if we are to believe the BOD about the asset value being less than debts. On the other hand if it doesn't go bust there is still the issue of bondholders converting 10's of billions of shares and selling the sp down to practically nothing.
"The Board is also exploring ways to allow shareholders and other investors the chance to participate in an equity placing."
Who in their right mind would participate in a equity placing now with potential dilution of lord knows how many billions of shares from bonds. If you went for equity placing at 5p and left bonds on 16p conversion price instead of resetting all bonds to 5p loads of people would have been interested. You chose then to put bondholders before shareholders.
It is just the usual bondholders trick of forward selling shares bringing sp down then convert at vwap and get 1bn shares for 1 million. Bond deal was great wasn't it Art and Ryan. Relax just another billion shares, nothing to see here
Yes they watched the forward selling and conversion of bonds to bring the share price down then shares issued at vwap time and again. They witnessed forward selling to drive down the already agreed price of 4p to 2.6p and still did not look at alternative financing. They forgot to seek financing until after default on more than one occasion. This was fraud. There is no other rational explanation.
Even if he did sign up to this crap deal in the first place going back time and again lowering the conversion price on multiple occasions was beyond incompetence. No way that was the best option.
Definitely up for the revolution against the Bourgeoisie. I can think of a few that should be first in line.
On a more serious note you are correct that the general populace absolutely hates when Cayman Island hedge funds and their corrupt fat cat mates get together to transfer wealth from average hard working people to the few. That is why I think a civil case would be very fruitful even with only circumstantial evidence. The outcome would certainly be difficult to predict.
There is no immediate future or any future here. The 1 billion shares for $1million interest tells us that. No idea why anyone is buying the shares now. The bondholder will forward sell shares down to practically zero now until the final collapse. What they have made already and what they pick up from asset sale will mean that they will be in profit. Shareholders will be left with nothing of course. Do the criminals in the BOD and the ones that have run off to hide still think bonds were the best option? No it wasn't incompetence on their part, it was fraud.
Stas, so if that is the case and the 1 billion barrels was true but if the RS report did have a number of contingencies that would have affected the value and this report was not released the question would be is that illegal. I am sure the JV partner did see the report and continued negotiations but could be that the value being discussed was a lot lower because of this. The problem is we will never know without a civil legal case being taken. It is obvious that the FCA etc are worse than useless.