RE:RE:News This is not about throwing away money. This is completely about control and retaining that control. The statement regarding dilution is an absolute give away, which may mean that there have been offers that would do just that.
The previous circular alluded to the company looking for financing in March 2022. This injection is likely the amount necessary to keep the company afloat for the next 6 months but not enough to allow CGX to drill Wei alone (as some have stated). I would want to see an updated report on finances and commitments following this loan.
The terms of the loan are quite heavy handed in that they force CGX to seek the consent of FEC in any potential JV or else fork up the balance in full. That is the reason for my previous post about minority oppression. Why would minority shareholders agree to limit the company's ability to contract independently of its majority shareholder, especially when it could mean the injection of capital we have been looking for to develop the three blocks, including secure Demerara with an initial drill, and build the port without having to wait hat in hand with FEC. We wouldn't.
Personally, I say if Suresh has balls he ties the payment of this loan into any JV on the table and get on with business. Enough with the games.
I have been a long and will remain, but that does not mean I am ready to be bent any further over the barrel.