GREY:LBEFF - Post by User
Comment by
JohnEStromJron Aug 07, 2009 10:52pm
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Post# 16202007
RE: RE: Nickel Over $9/Lb. What about that stock?
RE: RE: Nickel Over $9/Lb. What about that stock?Legend7,
So you DID respond. I somehow missed your epistle but it's missing a bit.
So, unless someone had $30 million the company felt no obligation to let others in on the deal. For the record, no one knew [except a few insiders] that this was offered until a "done deal" right in the middle of the "Quiet Period". Wasn't that Quiet Period handy for Gary? Wouldn't it have been nice to buy shares that paid 8% per year since they DO receive priority treatment - even in a bankruptcy.
Effectively, behind the closed doors, Liberty Mines was selling out the existing shareholders - for a loan.
Liberty doesn't need to ask shareholders in order to borrow. That's a function of the BOD. What it has done, however, is far different in that it gave controlling interest to another entity - in this case Jilin Jien - in exchange for a loan. That loan must be repaid. The deal was made during the Quiet Period and it IS a sale dressed up to look like a loan. It stinks. This wasn't a financing but a takeover rigged by Liberty Mines and we weren't even consulted.
As for taking us private - that will come. First they needed 80%. The common shares they received along with the convertible preferred add to about 77% so they needed to quietly buy another 3-4% to top the 80% mark, let some time go by to make sure no one sues and then this will go private. Of course we received NO guidance from Gary since he now works for them. They are merely lenders [if you listen to the BS] yet they are in charge. So, thanks to those convertible preferred shares they were very close. Since then I'm sure they've bought up the remaining few million they would need to get to that 80%. Yes, they want all of this to die down so it appears a natural progression instead of what it was - a clear rape of shareholders under the guise of a loan - that was anything BUT a loan
No, Jilin Jien has NEVER paid byproduct credits nor did they pay as much as Xstrata. Why, now that they literally own Liberty Mines would they be more generous than in the past? Not going to happen.