GREY:ADEXF - Post by User
Comment by
greenandgoldon Sep 15, 2011 1:24am
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Post# 19044032
RE: RE: XXP Due Diligence
RE: RE: XXP Due DiligenceThe July 28th press release says no such thing--all it says is that AXI shareholders approved the framework agreement and the TSX accepted the same. The latest press release indicates that AXI and XinXing are in the process of "finalizing the Formal Joint Venture Agreement and any terms or conditions associated with the implementation of the Joint Venture." In other words, the Joint Venture is not done, and the parties are still negotiating.
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My read is that XinXing brought its consultants to do serious due diligence and ask hard questions. Their commitment to the Joint Venture is 10X larger than their initial $5.3 million investment in AXI so the decision will take time. But the longer the process drags out--if the Joint Venture isn't done by the end of the year, for instance--the more signs there are that XinXing isn't confident in the project.