GREY:LBEFF - Post by User
Post by
ExSudburyGuy2on Apr 13, 2009 6:12pm
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Post# 15914627
Re: Interfax
Re: InterfaxActually the Interfax story does make sense (aside from getting the working mines wrong.)
Liberty issues 85.73 million regular shares that JJ pays 11 cents for. Total is $9.43 million to Liberty.
Liberty then issues 186.99 million preferred (non-voting) shares. Total to Liberty is $20.56 million.
That adds up to the $30 million every else has been reporting.
They had to issue preferred shares, otherwise JJ would have had about 77 percent voting stake.
It'll be interesting to see what the conditions on the preferreds are. Will they be convertible into regular shares somewhere down the road? In that case, JJ would effectively own close to 80 percent of Liberty then.
As far as Liberty shareholders approving the deal. I would guess as part of the deal, Liberty got funds and holders adding up to more than 50 percent to agree to it and locked them into voting in favor. So JJ is guaranteed Liberty shareholders will pass the deal.
Just my 2 cents worth.