RE:RE:RE:News - NexGen Closes US$110 Million Financingregular investors get the shaft? yes, I expect news on filing an application to sink a shaft in August. I also expect the PEA will come before the news on sinking a shaft. I am glad to see NXE on the fast track to production with developmet financing in hand. As for FCU, i can only imagine how dissapointed CGN must be that CCO has no interest in PLS.....What will CGN do?
quakes99 wrote: Wow! Mark this on your calendar! I totally agree with you teevee. Absolutely right! CEF and NexGen Management now hold all the cards... while regular investors get the shaft. No chance whatsoever of a takeout... just more financing dilution to regular shareholders as more and more shares get issued, and more and more convertible debt is taken on heading towards development and production. Holding for a Takeout Premium is right off the table for longs and speculators. CEF Holdings has their Golden Egg, and the Golden Goose by the short and curlies.
Where I do disagree is on the UNSECURED debt part. NexGen filed a 97 page Trust Indenture agreement on SEDAR yesterday. Perhaps you should read Article 7 - Default - starting on page 45. As a lender holding debentures, they ensure that they will be first to be paid out if NexGen can't pay their bills due to a languishing U price or other Black Swan event. "Unsecured" is not how I would describe it when compared to regular shareholders. Investors buying common shares through financings are the ones that are the most "Unsecured" of all. If NexGen goes into a Default situation then the assets are sold off to repay the CEF Holdings debt... leaving shareholders with nothing to share. All semantics... but the lawyers for the lenders make sure that the trust arrangement converts Unsecured to "mostly secured". Retail investors just get the empty shaft.
Good luck!
teevee wrote:
the door has now been slammed shut on a takeover before development, no matter how high uranium prices go because not only has control of the company been solidified between CEF and major shareholders, their interests are now also aligned. I can guarantee you that NXE will not be bought out, at least before it is in production. With CEF's seat on the board, and share position along with other large share holders, there is no way a takeover bid will arise or work no matter the offer, because CEF and major shareholders know the big money comes AFTER Arrow is in production. That is why CEF is going to finance the Arrow deposit all the way through development. By the way, where else has a large lender agreed to UNSECURED debt financing?