RE:What is next for nemaska lithium Tothemoon514 wrote: What do you think will happen next? At this point the company has 3 options:
1) recapitalization- i think this is the most likely scenario, financial instutions, government and investors come up with a financial package to get the company back on track( this package might look similar to the financial package that saved Bonbardier. Everyone would win ,nmx would be relisted and stck price would bounce back.
2)sell the company : Very unlikely and most likely would not get approve by majority of shareholders of nemaska.Most investors are in at about .75 $ share- I do not see any investor willing to pay 500millions to buy nmx and invest another 1bil in its completion-
3)liquidate its assets -:very unlikely and worst case scenario.I dont think this will happen unless there is some type of back door dealing with some deep pocket investors to screw retail investors by selling assets at a discount only to start a new company with a different name.
i would like to hear everyone s thought
#1 is a bail-out package. Remember, Bombardier is a large GOING CONCERN with more than 2 digits worth of employees. They have been bailed out more than once, many thanks to incompetent management. Does that ring a bell? Maybe it would be a different story if NMX had been revenue generating for a few years. BBD is already a money pit, do the Quebec and Federal gov'ts need another one?
#2 NMX is not yet a company per se. No revenues! A buyer is purchasing some assets that need a billion dollars worth of work! What you paid to get in is totally irrelevant, historical/sunk cost, it's what it is worth now and that's not much!
#3 garage sale. If good profitability in the lithium field is on the horizon, there will be interest, but the buyers are in the driver's seat, not the sellers! Price and/or concessions will hurt!
How this will play out, I don't know! Whodathunk right before Christmas they'd go for protection? Way too many options/variables in the road ahead... My crystal ball is a little too cloudy to speculate. However, like Calgary, I would also reinvest if there's a buck or two to be made. lol