RE:Smoothwater will not support the proposed merger ... You now have the reason that the stocks were halted for 7 days.
This is very interesting, and you can see the reason for all the sneakiness on the part of MQL. I think the exchange is also guilty of allowing MQL to say in a press release that the bank review would be complete by May 31, and then never make any comment as to the status of this. Thats not right.
You can also see from the press release from Marquee, that the bank line will be substantially less than they currently have. In other words, without this deal, Marquee is heading to bankruptcy. The press release states MQL will have debt of 19 after this deal is done, which basically gives them 30m dollars, which means their current debt is 49m dollars. Here is what Richard had to say about that .....
Marquee has a syndicated credit facility with two chartered banks. The credit facility has a borrowing base of $50-million, comprising a $40-million revolving demand facility and a $10-million operating demand facility. It is anticipated that a review of the credit facility will occur by Aug. 31, 2016. As a result of recent asset sales and the current economic environment, it is expected that the credit facility availability will be decreased; however, Marquee will have ample credit facility liquidity to execute its business plan and will be in full compliance with the credit facility
So its this deal, or bankruptcy. And I agree with this shareholder, they are saying AOS is taking over MQL, so their shareholders don't get a vote ... yet when its done, they don't control the board, and no management say at all. What a bad deal and bad precedent.
This stock may trade down to a nickel or less, but the fireworks has just begun, thats for sure. So this firm has 16% of 30m dollars at risk, or about 5m dollars to cause a big stink.
If the deal goes through, will the management all take salaries of 100k or less rather than the outrageous payouts they are now getting???
Run away Run away