GREY:MWSWF - Post by User
Comment by
jplordureon Feb 02, 2015 12:31pm
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Post# 23388536
RE:nprice
RE:npriceMost likely, Galena offer will lead to the full dilution of the company.
TSX de-listing is probable if exemption requested by MWE (in relation to offering lot's of warrants to Galena for debt re-structuration services). Upon approval by stockholders, Galena would exercise all it's warrants and have full control. After that, they could deliberately make sure to let the company run out of money and dilute it with additional funding at pennies a stock until they get 90%. After that, they can buy-out the stocks at a few pennies.
TSX regulators don't agree with the 12 cents / 15 cents as a fair value, and do not accept the debt settlement as fair. Technically, after the deal is done, if shares don't jump above 12cents on the spot, it will mean that major Funds/ Venture capital beleive the company will be fully diluted. If it goes at 12cents and more, with lots of volume, this would mean Galena is not as evil as it looks and that the diluted shared holders have still some ownership....
I would have preferred they buy-out at 12/15 cents, but it's cheaper for them to dilute and take control. Once in control, who can stop them from diluting? Galena wants the assets and there going to take the company. Actually, if offer is rejected, the company will go chapter 11 for sure.. Galena made sure of that... instead.... they make the exact same thing as a chapter 11 would be, but they just make sure to be in position to fully dilute MWE leaving original share holders without a penny.