KWG Resources Inc C.CACR

Not even sure a White Knight can come to our rescue

[Dragon23]

If you doubt that our ‘management team’ have  placed us in a rather precarious financial position, read the ‘not so fine’ print in the agreement with Fancamp.
 
 
The Secured Convertible Promissory Note shall be convertible, in whole or in part, at the option of Fancamp, at any time following the closing date, up to and including the maturity date, into fully-paid MVS at a conversion price equal to a premium to the Base Conversion Price if converted anytime on or before the two year anniversary of the closing date, and at the Base Conversion Price if converted anytime thereafter (up to, and including, the Maturity Date), in each case, subject to adjustment in accordance with the terms of the Secured Convertible Promissory Note.
 
Immediately following the issuance of the Secured Convertible Promissory Note and the Warrants, Fancamp beneficially owns or controls the Existing Shares and securities of KWG which are convertible or exercisable into: (a) 8,088,908 MVS, assuming the conversion in full of the Principal Amount on the basis of a base conversion price of C$4.2651 and subject to adjustment (if any) as contemplated in the Secured Convertible Promissory Note; and (b) 4,044,453 MVS, assuming the exercise in full of the Warrants, collectively representing, in the aggregate, approximately 68.27% of the issued and outstanding MVS (approximately 41.83% of the issued and outstanding Shares, assuming the conversion of all issued and outstanding SVS into MVS at the current conversion rate).
 
On any announcement of a business combination, take-over bid or other change of control involving KWG as the target, Fancamp will have the right to convert the Secured Convertible Promissory Note at the Base Conversion Price and/or to exercise the Consideration Warrants at the Base Conversion Price, in each case, in whole or in part, at the option of Fancamp, prior to completion of the change of control event.

[Mistyblue]

D23. the only way that this outlandish scenario would work in CACR's favour is if Frankie has secured a silent partner who has agreed to assume the debt load etc. for control of the whole maggity pie.  Totally unrealistic IMO...   MB... Loan Sharking 101.......  

[Dragon23]

Sorry, but if FNC exercises their rights as per the last paragraph above, that wouldn't even save the day.  Explain why you believe as you do, in light of the last paragraph I posted??? At this moment, it sure looks to me like our management are simple 'lame ducks'.....probably explains their silence. 

[lou64]

But it shows that the deal is in COMPLIANCE ? Your statements are opposite of the requirements and are misleading ... AS LONG AS PAYMENTS ARE RENDERED THE DEAL IS THE DEAL UNTIL OTHERWISE DISCLOSED 

[Dragon23]

I provided very clear documentation From The Agreement to validate my comments. You do the same Lou64 please.