RE: Woulfe Mining Announces $20 million Convertibl Woulfe has done a lot of things right, but from the looks for things it doesn't seem like negotiating is a strong suit. I think that the the deal is almost just as important to IMC strategically speaking as it is to Woulfe, as it secures supply outside of China.
While there has been no news on the IMC financing yet, what I deduct from the NR is that either IMC has signicantly changed the terms of their offer (the terms of the original IMC agreement were much better than the $20M deal, so I think Woulfe would have gone for the IMC deal unless terms were changed significantly), or IMC is off the table and the $20M buys time to find another suitor. My guess is the first, that the terms have changed.
My suspicion for how this played out is that Woulfe stopped shopping around for potential suitors once IMC was at the table, and it came back to bite them. If Woulfe would have had a stronger alternative agreement should IMC not work out, IMC wouldn't have been able to walk all over them. When you have no other options on the table, it gives whoever you're negotiating with waaaay too much power.
Woulfe is sure giving a lot of the pie away considering how valuable the Tungsten is for IMC and its expansion plans. Hopefully my speculation is incredibly misguided and Brian is going to pull a rabbit out of the hat by tomorrow morning...but I'm afraid that would be an even more speculative scenario.
I still hold faith that eventually this company will make shareholders some money and that whatever deal is negotiated, the stock will still be undervalued from its current price of 25.5 cents. I just hope this deal doesn't start panic selling.....Disappointed....GLTA.
Disclosure: I hold shares in Woulfe