RE:RE:RE:RE:It Aint Over Until Its OverScottie99 wrote: In other words, the purchaser don't have the funds ready and have to source for funds from private placement and Chinese banks. Is it just me but there is something seriously wrong with the whole arrangement? How are they going to be able to make the payment within a day or two after approval is obtained when they have to rely on private placement that might not be successful and financing from Chinese banks that might not be forthcoming? No wonder they would keep extending this until they run out of gas and it is beginning to make sense why Investment Canada would withhold approval!
It doesn't matter if shareholder approval has been obtained, if the private placement don't generate the required funds and the Chinese banks don't make the money available, it is not going to happen! Good luck to those of the opinion this is going to close, the whole thing stinks to high heaven!
They don’t have to close the deal a day or two after Investment Canada approval is received they have until the June 30 Outside Closing date and they have until June 29 to deposit the required funds in the Escrow account and Transfer Agent. **If there is a money delay The LRE BOD with the approval of the Lenders can extend that if they chose to. Whether they would or not would depend on the reason.
My understanding is that the Share price for the Changchun PP will be based on 20 trading days. That gets us to abt. a June 16 closing.
The PP is for three investments including the abt. 50% ownership share of LRE. One of the others is a Loan repayment.
If the PP doesn’t raise enough to fund all three they intend to reduce the Loan repayment to fund the other two.
The other 50% share of LRE is being paid for and owned by a private holding/investment company 100% owned by two individuals that are also involved with Changchun Sinoenergy.
I believe that the Chinese Bank stuff is to do with the Credit Facility. After the deal closes that will be the Lenders problem if there are any. I “think” that I saw in the “Google translated” documents that one of the owners of the “Private” company has given Personal Guarantees to the Lenders but I could have misunderstood that.
My impression is that the two (or one) people orchestrating this deal seriously want to get it done.
I think that the odds of this deal getting done are pretty good but there is never any guarantee.
It’s Not A Done Deal Until The Money Changes Hands !!
As Always; Do Your Own Due Diligence; It’s Your Money !! PS; One thing that does “Stink” a bit is that unless I missed it there was no mention in the Info. provided by Long Run that any kind of “Shareholder Approval” in China was required.