So much for Victor's due diligenceSo much for Victor's due diligence
Right out of the last UNAUDITED Financial Statements on SEDAR:
On May 25, 2009, the Company closed a $30,000,000 equity financing with JJNICL. The financing consists of a private placement of $9,430,604 for 85,732,763 common shares at
.11 per share and the issuance of 186,994,510 preferred shares at
.11 per share for a total of $20,569,396. As a result of the financing, JJNICL owns 51% of the common shares of Liberty, which represents a change in control of the Company. If all of the preferred shares were converted, JJNICL would own 76.8% of the common shares of the Company.
The preferred shares shall:
i)
Be redeemable by the Company at any time at a price equal to
.11 per share plus accrued and unpaid dividends. The amount may be paid in cash or nickel concentrate;
ii)
Have voting rights on an as-converted basis to common shares;
ii
i) Be convertible by JJNICL into common shares at any time without expiry at no additional cost and at a 1:1 conversion ratio. The conversion ratio is to be maintained pursuant to customary anti-dilution adjustments such as a common share reorganization due to a consolidation or split of the common shares; a rights offering of common shares; or a capital reorganization through a merger or amalgamation with another company; and
iv)
Pay an 8% cumulative annual dividend to JJNICL.
As part of this financing, JJNICL directly paid the negotiated balance due on certain Notes described in Note 10(b). The balance of the financing was funded to the Company. Of the $30,000,000 equity financing, approximately $15,200,000 was used to pay long-term debt and approximately $14,800,000 was contributed to
working capital to pay accounts payable, capital lease obligations and other obligations. A gain on the extinguishment of Debt was realized for $3,374,626.
AND YOU GUYS THINK THIS IS A GOOD INVESTMENT??? WOW!