N77 vs LBE Financial Statements Aug 11/10 On SedarNickel77,
In your last post you said:
_ "That cash pays for the debt over the next 1 ½ years and redeems the preferred shares that the Chinese have
_ publicly stated (twice) they will not convert to common shares. So do not bring up massive dilution again, as it
_ is a falsity and proves how constipated you really are.”
And from the SEDAR LBE Financial Statements Posted On August 11th, 2010, and I quote:
_ On May 25, 2009, the Company closed a $30,000,000 equity financing with JJNICL. The financing
_ consisted of a private placement of $9,430,604 for 85,732,763 common shares at 11 cents per share and
_ the issuance of 186,994,510 preferred shares at 11 cents per share for a total of $20,569,396, less the fair
_ value of the preferred share dividend liability of $8,227,758 and expenses. As a result of the financing,
_ JJNICL owns 51% of the common shares of Liberty, which represents a change in control of the
_ Company. If all of the preferred shares were converted, JJNICL would own 76.8% of the common
_ shares of the Company.
_ The preferred shares shall:
_ i. Be redeemable by the Company at any time at a price equal to 11 cents per share plus accrued
_ and unpaid dividends. The amount may be paid in cash or nickel concentrate;
_ ii. Have voting rights on an as-converted basis to common shares;
_ iii. Be convertible by JJNICL into common shares at any time without expiry at no additional cost
_ and at a 1:1 conversion ratio. The conversion ratio is to be maintained pursuant to customary
_ anti-dilution adjustments such as a common share reorganization due to a consolidation or split
_ of the common shares; a rights offering of common shares; or a capital reorganization through
_ a merger or amalgamation with another company; and
_ iv. Pay an 8% cumulative annual dividend to JJNICL with interest of 8% accruing on the dividends
_ once they become due. The dividend accrues on a quarterly basis.
_ The preferred share dividend accrues on a quarterly basis and therefore the present value of this
_ dividend stream has been classified as a liability. The value has been determined using the Dividend
_ Growth Model, using the following assumptions: dividend growth rate of 0% and required rate of return
_ of 20.0% based on the estimated market rate of comparable risk debt assurances.
_ Dividends of $816,013 plus interest of $47,401 was accrued during the six months ended June 30, 2010
_ in relation to the preferred shares.
So Nickel77, not that I am a doubting Thomas, but taking your word over the Financial Statements filed on SEDAR on August 11th, 2010 (11 days ago) just doesn't cut it for me (and many others that have been attacked on the BB when simply stating the facts!). With your inside track on this POS maybe you can put a call into Dr. G. Nash to have these clauses removed as in your words "So do not bring up massive dilution again, as it is a falsity and proves how constipated you really are.". Impress us all, have this clause removed when LBE issues their next set of Financial Statements, otherwise take your hollow words and pray to God that someone doesn't sue you ($25,000 Small Claims Court In some jurisdictions in Canada for each any every victim) for the BS you are spreading!
Have a good day!