GREY:ADEXF - Post by User
Comment by
Greenandgrizzlyon Mar 08, 2012 12:24pm
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Post# 19643954
RE: RE: RE: hey Goofy goofy
RE: RE: RE: hey Goofy goofy I think it's a very bad idea for a junior company with no cash and no revenues to take on debt of any form. This is not ranting, or ignorance, it's common sense. Convertible debentures, and other forms of debt, are deadly for juniors without positive revenue streams. It's a hail mary move and it often turns out badly. See Royal Coal and a lot of other companies.
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How do you know XinXing's going to convert its debt into shares? If they don't like the DFS's results they will not convert. It's their free choice. There's no guarantee the DFS will be wildly impressive, and no guarantee that XinXing will convert the debt to shares.