Proof of Financing Deal Needed KGI made a claim that it had a financing of $60 million through the CIBC in the form of an 'underwriting' of 'convertible debentures' which paid 7.5% with a conversion price around $13.00.
1. If I were the Bank, why would I not say to a cash-strapped company, not only will I take my 7.5%, but I will also take the shares any time I want at TODAY'S MARKET VALUE? Surely a Bank which did otherwise would get in trouble with its OWN shareholders for such a sweetheart deal. If I was financing you these days, I would screw you to the wall, and you would beg for more.
2. There is no evidence for this deal apart from what KGI says on its own website, and what KGI has posted in its area in SEDAR. If there is corrobborating evidence, please post it KGI, because in today's environment no one believes anything which cannot be proved. One inconsistency, and red lights go on. CIBC will neither confirm nor deny their participation with KGI, so that means all we have is KGI's word on it, which is no longer good enough. Proof, please, or resign.
3. If the company is experiencing cash burn, it is because it has too many employees, or the management salaries are too high. They need to get with the real world and cut expenditures. The company has failed its shareholders, and heads need to roll.
4. What is the longitude and latitude of this huge mining area, so we can see it on Google Maps?