RE: RE: No One Has Considered ThisMagic8ballman:
You ask:
"If JJ actually didconvert their shares and put in the rest in to take over this company,they would have to pay out Liberty shareholders what the shares shouldbe valued at based on Reserves and Nickel prices at the time, i.e.over-all value of the company."
The answer is no. The terms are clearly outlined in the Financial Statements. However, JJ has already taken control of this company! Minority shareholders do not have enough equity in the company (ie 49%) to affect change at the board level, only JJ can do that with their existing 51%, and they vote as one block (single entity). JJ will continue to receive their $1.65M per year, with 8% interest on outstanding balances, until the debt is paid or the "Preferred Shares" are converted. They have the right to convert the "Preferred Shares" if, and when, JJ decides, without any obstruction. If the "Preferred Shares" were converted then 186,000,000 "Preferred Shares" would become 186,000,000 "Common Shares", and be merged with the existing 168,000,000 Common Shares, for a total of 354,000,000 Common Shares. This would leave JJ with 76.3% of LBE, and the existing minority shareholders would see their 49% interest in LBE be taken down to 23.7% -- mega-dilution! There are many, many people that see this and this is why LBE is priced where it is. Ask yourself, how much would LBE have to make in gross profit in the "Preferred Shares" were converted by JJ and for each LBE share to increase by $1.00 in value. The answer is approximately $500,000,000 (35% taxes according to SRK would leave approximately $350,000,000 of gross profit (not revenue, this is profit before taxes after all expenses including interest), for each LBE share to attain $1.00 of value. The wonderful thing about democracy is that dreamers are allowed to dream!