GWA Group Ltd V.GWA

RE:RE:RE:Beer store OK but what about the Bank?

[Tim2Agami]

cynic7206 wrote: Tim2Agami,

Maybe I am just being a cynical Susan.   I done the reading - it all sounds good - but companies have built mines in less time.  It has been 2 and half months - is the debt converted - apparenly not.  

Quite right on the conversion timeline, Cyanide Sue. Maybe it's not yet baked, Jake, but maybe there is a Plan, Stan.

The new CFO was appointed only on August 28...

And the New CEO only goes live to air on October 04...

So not much would likely happen in the fluid transition and tidal zone of September (with CFO Huang Demin at its core) in this sea change of the company, in order to put anything into play .... that is, until CEO Dan Jean Luc Picard Gagnon goes to the bridge, takes charge of the Enterprise, and says to the crew in the fourth quarter: "Make it so..." 

• Greenwater Investment Hong Kong Limited (“Greenwater”) will convert $6,285,194 of principal and accumulated interest into 25,140,774 Gowest shares, representing approximately 16.3% of the Gowest shares to be issued and outstanding following the completion of the Transaction. The principal and interest to be converted by Greenwater represents approximately half of the outstanding principal and accumulated interest owed to it. The remaining portion of the debt owed to Greenwater, being a principal amount of $3,500,000, with repayment obligations being extended by 12 months, otherwise remains outstanding according to its original terms.
• Inner Mongolia Jinshengda Investment Co. Ltd. (“Jinshengda”) will convert $5,858,552 of principal and accumulated interest into 23,434,208 shares, representing approximately 15.2% of the Gowest shares to be issued and outstanding following the completion of the Transaction. Jinshengda acquired its debt, at par, by assignment from Shandong Humon Smelting Co. The debt owed to Jinshengda will be satisfied in full pursuant to the Transaction.
• Lush Land Investment Canada Inc. (“Lush Land”), will convert $5,568,205 of principal and accumulated interest into 22,272,820 shares, representing approximately 14.4% of the Gowest shares to be issued and outstanding following the completion of the Transaction. Meirong Yuan, a director of Gowest, is also a director and minority (non-controlling) shareholder of Lush Land. The debt owed to Lush Land will be satisfied in full pursuant to the Transaction.
• C. Fraser Elliott, Gowest’s Chairman, will convert $312,137 of principal and accumulated interest into 1,248,548 shares. Following completion of the Transaction, Mr. Elliott will hold an aggregate of 7,340,551 Gowest shares (including his existing shareholding), representing approximately 4.8% of the Gowest shares to be issued and outstanding. The debt owed to Mr. Elliott will be satisfied in full pursuant to the Transaction.

The Transaction is designed to improve the financial condition of the Company. The Company has insufficient cash on hand, and no immediate source of cash that would be sufficient, to satisfy the Debt. No new Control Person (as defined under the applicable policies of the TSX Venture Exchange) will be created pursuant to the Transaction. The terms of the Transaction are considered to be fair and reasonable to the Company having regard to its current circumstances.

Deals with a large chunk of the debt... but there is stlil that nagging cash problem. Mines may have been built in less time, but not with less money  in the till. 

Maybe a few gold bars coming back from Humon will help put a jingle in their sporrans