RE:Debt Conversion Breakdown and random thoughts One thing I might add or revise Check is the assumption that they think its a better payout than the loans.
Put yourself in their shoes.
The debt they owned was not secured or first lein. The company addressed in this NR (so surely it was disclosed to them) that they had no cash to pay any of the debt or interest on these loans.
Their options we're to take equity. Or fight each other for the scraps that would have come from the inevitable bankrupsy. And not only that, but they would incur legal costs to possibly recover 1/10th of what was owed to them.
Having been invested here I've learned to leave the rose colored glasses at home, and one must read everything through a negative lens.
I have hopes that Dan can do good, but if the CFO cant get a deal done to raise capital then the moose is cooked here.
One thing to note is that they still owe $3.5m in debt to Greenwater. So even after the 50% haircut, they have debt on the books, no cash, and havnt announced a plan to do anything.
A bird in hand is worth two in the bush. And at this point we've paid severely as shareholders since 2017 to get no further ahead.
They pulled a massive rabbit out of the hat here, but theres no doubt in my mind that this was a one and one time only type of deal. The market doesnt forget, nor do the creditors or potential dance partners looking to invest.
They need to DO SOMETHING, and soon.
JMO
checkmate28 wrote: To Break this down.
Most importantly They got everybody together and have a plan plus risk is greatly reduced.
GWA will now have 154M shares OS
At todays price of .20 the market cap would move to about $30 M with the added shares
They converted at a 25% premium to todays price
The 3 converting Chinese entities (our new partners) will have together about 46% of the company
If they converted, they must believe that they'll get a better pay out than the original loans.
Gowest has significantly reduced the risk with these moves and is in a much better position to finally move forward. Near sure the financing deal to get GWA underground producing is at hand.
New Quality CEO "THE DON" I like him a lot.
Moving GWA forward should be an easy job for him.
cleaned up balance sheet,
Great Price of Gold,
1.2 Million oz resource at 6gpt
robust Feasibility with $900 AISC
We need some financing and to see a mine plan and its game on! Don will do his job. If the market sees this, I think $30M Market Cap and .20 will be cheap. Once producing, the market cap should near $100m and that transulates to about .60 per share.
At some point they need to talk about rolling in the mill Being a brownfield it should come with a reasonable price tag. $15 - 25 M?
Exploration, YES bring it on and lots. A new discovery or shoring up the other targets will give investors more reasons to speculate and drive up the value of the whole company. Plus a 2 Million oz resource might get them to a robust 100k oz updated feasibility study
Just throwing things out there to get some dialogue going. What's your thoughts or what can you add?