Maxim Power Corp T.MXG

Time to cancel remaining covertible loan facility

[Hanalyst727]

Now that Milner is up and running and generating cash flow, its time for the board to cancel or otherwise declare that Maxim will never borrow from the remaining $45.5 convertible loan facility.

There is no longer any justification for such dilutive and expensive financing.

This is a huge potentilal dilutive overhang on the shares as the loan would convert at $2.25/shr and pay 12% interest until converted. This would add another 20.2 MM shares, and bring the total to 86.4 MM diluted. Existing shareholders would get diluted by 23%.

Exercising this remaining facility would be a serious abuse of the minority shareholders.

[tinkvid]

Yes, I agree the potential dilutive overhang is always a concern but I am not worried about it, knowing who the holders are. When the time is right those shares will be converted once a premium takeover offer presents itself and we won't even notice it. Positive that CCGT commercial operations begun recently....What is not talked about is the progression of the Mine 14 project and that