GREY:WFEMF - Post by User
Comment by
ark88on Jan 28, 2014 9:57am
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Post# 22141625
RE:Today's news..
RE:Today's news..Couple of points to highlight on yesterdays financing news:
1. It is not a PP (Private Placement). PPs are PRIVATE financings done between an "experienced investor" and the Company which does not fall within the juridiction of the Authorities...meaning, they do not have to reveal who the investor is. Also, PPs are generally structured around issuing shares and warrants. It is not a debt instrument.
2. Convertible Debenture announced is a Debt instrument whereby the company pays a set interest (12%) for x number of years until maturity (2016) at which time the entire principle amount must be paid back to the CD holder (Dundee). Generally, this debt is securitized with the assets of the company, and/or a fomula is struck whereby the debt/interest can be converted into shares of the company.
Yesterdays announced CDO is by far the best CDO that I've ever seen with a junior mining stock. The terms are really generous. I can not see how anyone could interpret this as a negative in so far financing is concerned. The larger issues still casting a dark cloud over this stock remains to be unaffected by this CDO, regrettably. GLTA