OTCPK:GALXF - Post by User
Post by
Lithium4everon May 20, 2013 8:21am
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Post# 21416941
By a local (au) blogger
By a local (au) blogger
| From an australian financial blog, by a local blogger: Well, after that update, I almost fell of my chair. After digesting the information provided, below is the decoded version of the letter.....
"Dear shareholder (suxer),
On behalf of the Board, we would like to provide an update of your company and its capital raising plans, to dilute you to oblivion and beyond.
Over the past 4 years, we have worked hard to build a global lithium company, no other lithium company has acheived this advanced penetration of its shareholders.
We ask our suxers to understand that this is no easy task and now that we have created this mess, we have to go cap in hand and act like a begger on the corner of the ASX.
Funding, constructing and commencing operations at Mt Cattlin on time and on budget was a major milestone for us. We got Mt Cattlin into production just in time to shut it down as our battery plant became operational, asthe cost of production was to high.
Our state of the art battery plant is so close to being cash flow positive but we don't have enough funds to survive the next few months. On behalf of you suxers, we engaged in a Blitzkreg on the lithium world and as history has shown repeatedly, if you over stretch yourself, you often end up in deep trouble. Despite the numerous examples that litter the corporate world of failed companies, we thought Galaxy would be different, after all we are superhuman. We got it wrong with your money.
The board asks for your understanding, do you know how hard it is to make money on a product where demand exceeds supply and you can issue your customers with price increases of around 20% per year. Its not easy.....
We have appointed corporate advisors to advise us on the most effective way of begging for additional funds. Its no easy task to take the shareprice form $2+ to 8c in less than 3 years, to do so puts us in an exclusive club, no other lithium company has done this.
Suxers must feel very frustrated with the share price performance but we feel your pain. We are in the same boat, our free shares that we awarded ourselves and options are also suffering. We are going to take a 20% reduction in salary, as we beleive that this is fair, especially since most shareholders have lost more than 50% of their funds.
We encourage you suxers to particpate in the placement beacuse if you don't we probably will not have a job. This will be terrible for us, as who will want to hire any of us after they review our success with Galaxy, so please allow us to stay on, we need the experince in the penny dreadful end of the market".
END OF RANT.
I own GXY in my SMSF (average 75c) and privatly at average of 39c. Never have I witnessed such a destruction of shareholder wealth when the general market forces for the company have been so positive.
I would prefer appoint a liquidator and sell GXY asetts, payout debts and see what happens than to proceed with this capital raising, an absolute disgrace...Board has to go.
Anybody else thinking that wont be long till talk of a class action starts............. |
Good judgement comes from experience and experience comes from bad judgement.
“In our job we get paid more when we go faster but [with] lawyers it seems the other way around.” - cyclist Cadel Evans.
Holding: ADO, AJQ, CAP, GXY, IMF, NTU, QBE & RMS.
SMSF holding: don't want to talk about it. |