GREY:ADEXF - Post by User
Post by
sparky61on Dec 10, 2010 3:07pm
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Post# 17830929
Asset Dilution
Asset Dilution I read a few days ago, but didn't have time to respond, a comment from a concerned shareholder, that John gave up 50% of the company to align with Xinxing Pipe. I spoke with the company recently, just to get my facts straight; and was told that XXP has a 50% offtake agreement for Roche Bay, as Fulong also has a 19% agreement(if they exercise their
.55 warrants). This only means they have an agreement to purchase that much ore, at current prices( pre-sold sales.) This does not include Tuktu, the F zone or Alaska, or any other assets they aquire.
As to diversifying too much( looking for more assets), I was a little concerned as well. I have seen other companies wither, as they tried to juggle too much at one time, with not enough cash to do a proper job. I don't think this will be the case with John and AEX. For one thing, it's costing him nothing to aquire these assets( his Chinese partners are funding his expertise and ability to pick up rich assets). As to whether he keeps them in the company, or spins them out, as free shares to curreent shareholders, or just gives us a dividend payout is yet to be determined. Many scenarios could play out. All I know is, this company is becoming something very big, and exciting. John and his people are doing an excellent job for the shareholders. Thank you, and Merry Christmas. Sparky.