RE:FCU Option Expiry - NXE Share Compensation SOARS!You say Razzle and Dazzle... I call it Sleight of Hand. Tomayto, Tomahto. Sometimes I think the Nexgen investors (sheeple as I call them), must be under hypnosis of sorts....
nxe MDA, page 5:
"Finally, as previously stated on June 10, 2016 the Company completed a private placement of US$60 million in aggregate principal amount of Debentures to CEF. At maturity [June 11, 2021] the
US$60 million principal amount of the Debentures is due in full, and prior to then at a premium upon the occurrence of certain events, including a change of control.
The Company holds sufficient US dollars to make all interest payments due under the Debentures until maturity but not to pay the principal amount. Accordingly, the Company is subject to risks associated with fluctuations in the Canadian/US dollar exchange rate that may make the Debentures more costly to repay. In addition, unless the Company commences generating revenue prior to the maturity date of the Debentures (or sooner in the event of redemption in accordance with the terms of the Debentures),
the Company will have to raise funds to repay the principal amount of the Debentures and there can be
no assurance that the Company will be able to raise sufficient funds when required, at all,or on reasonable terms." But what if there is a change of control before the maturity date?
"Upon completion of a change of control (which includes in the case of the holders right to redeem the Debentures, a change in the Chief Executive Officer of the Company), the holders of the Debentures or the Company may require the Company to purchase or the holders to redeem, as the case may be, any outstanding Debentures in cash at: (i)
on or prior to June 10, 2019, 130% of the principal amount; and (ii)
at any time thereafter, 115% of the principal amount, in each case plus accrued but unpaid interest, if any. In addition, upon the public announcement of a change of control that is supported by the Board, the Company may require the holders of the Debentures to convert the Debentures into Common Shares at the Conversion Price provided the consideration payable upon the change of control exceeds the Conversion Price and is payable in cash"
"As at June 30, 2016, the Company had cash and cash equivalents of $101,436,773.....which is sufficient to carry out committed exploration activities and corporate and administrative costs for the
next two years. So what happens when they blow through this money? Raise US$60 million to repay the loan? Or if there is a buy out before June 2019, US$78 million is due... thats CAN$101 Million at todays exchange rate.. or $0.30/share's worth.
I wonder if nxe investors even consider the implications of this loan...
Rover90 wrote: FCU options expiry of 400k Aug 15.
Read more at:
https://www.fissionuranium.com/_resources/financials/FCU-Option-Summary-2016-07-31-v1.pdf NXE Stock compensation soars in Q2 2016 to $3M FROM $650K.....wheres the outrage OLD Gizzy.
Check Sedar....... https://www.sedar.com/
While NXE Shareholders are their they should check on the other interesting documents filed before and after the NR wrt drill hole this week..............the old
RAZZLE AND DAZZLE.....LOL!!!!!!!!!!!!!!!!!!!!
Forget about finding the sedar documents on the NXE website.......Q2 finacial statements, insider notification not there.... ;-(