High River Gold Mines Ltd HRIVF

RE: Do we need to smell the coffee

[peego]

If I read the footnotes (note 11) in the Q1 on debts correctly, of the $27 assigned by Standard bank to severstal, $15M is owed now by HRG to severstal, and $12 from Somita to seversal. At SP of $0.18, the market cap is $109M. If severstal was to convert the $27M owed into shares, that would be a dilution of about 25% (or roughly 150M shares?) which would bring severstal's control to around 65% or so? please correct me if I'm wrong. even then, they still cannot vote with their shares in their buyout offer (can someone confirm this?), so if the non-severstal SH vote no on the buyout, I do not see how severstal will succeed in taking over the remaining shares.