Cline Mining Corporation T.CMK

Is the new financing better than the Rights plan

[bond46]

I was just working out the numbers to see if the new financing is better than the Rights offering initially agreed by Marret in the recap agreement. And there is hardly any difference at all. The Rights offering were slightly better than what Haywood promised in his News Release. If the current shareholders who hold 210million CMK shares exercised the Right in a 1 to 8 ratio at 2cents a share, the company would have to issue 1.7billions shares  to the current shareholders and the company would get about 35million dollars to use as working capital. In case the current shareholders would refuse to exercise the Rights, then the Stand-by Purchasers ( which would be no other than Marret)  would have to buy 1.7billion shares at 2cents a share that would yield 35million dollars. If the current shareholders exercised all the Rights they would own 45% of the company and Marret would own 55%. But if the shareholders did not exercise the Rights and Marret would have to foot the bill, Marret would end up owning the 90% of the company and the current shareholders the rest 10%. The same deal is now in place. Marret by buying 10 million dollars in Cline Bonds has the right to convert them at the price of 0.005 and Cline would have to issue 2billion new shares that if multiplied by the conversion price of 0.005 would yield $10million and would own 90% of the shares while the rest of us would own only 10% . So there is no difference at all. I would say that if Marret were to buy 1.7billion shares at 2cents a share, it would be better for the company because it would yield 35million dollars to the company. The new deal, how does it benefit the company. It does not. So Mark Haywood has some explaining to do at the AGM. Another thing that we have to ask Haywood and the current board is whether they own  any stock of CMK, have a skin in the game, in other words or they are all  stooges for Marret. Keep these questions in mind guys for the AGM. We have to know under what conditions is Marret entitled to convert the bonds into equity. If there are no conditions, we are screwed because even if the stock starts going up, Marret can dilute the stock at will and trash it.

 

[riverrocks]

Can this question not be asked now to Mark. Does he not owe it to the share holders what kind of deal he has made ?