RE:Which exception will CGX provide us?Coming on two weeks now and still no release as to which exception applies to the secured loan to CGX. My patience is truly running thin and methinks that someone did some overzealous sidestepping when they signaled to the market that FEC was going to have it their way or no way at all. The deadline could be a signal that FEC is willing to play chicken with any offers on the table needing to be tied up by then.
Also, to those that still have it a$$ backwards:
1. a secured loan always has asset collateral, that is the point of it being secure. However, that security only allows the security holder to seek relief through the selling of the assets in circumstances where the loan amount is less than the total assets. At present I am assuming the assets (including potential reserves) are leagues beyond 35mil. Based on the financial audit, one would need to explain to me otherwise. To take the assets as a few have suggested would mean FEC is being unjustly enriched; and
2. the lesser strike price under the bridge loan was due to a non-dilution clause. If the same doorknob accepted those terms under this agreement, then there is the potential that $3.10 is the upper limit of the potential strike price for the conversion (if it is to occur). I am hoping that it is a straight deal at $3.10, as it is highly unlikely that FEC would pay to wind up CGX only to be in the same position it is (ie FEC calling the shots), but stranger things have happened. This is why I believe the likely outcome is conversion if no capital comes in;
3. I have nothing to say about government input or corruption, as it would not surprise me either way. We are dealing with a commodity built upon the back of opportunity (what that looks like is different to everyone).
Again I wait like everyone else to see this little engine that has continue to could.