WESTERN POTASH CORP T.WPX

How will the market react?

[riche_6]

On one hand - we dont have to worry about money burn and certainly shows confidence by the buyers given the resourse offtake agreement that the expectation is resourses will be supplied some day.

On the other hand - investers just got diluted 20%ish. 

Think the market will love or hate this?  I like it but I expect a bit of a dip on the news...

[materialsgirl]

One can never tell about market reaction but the idea of dilution is not new nor a surprise.  The till was empty and a new money raise was 100% certain.   In theory, it could have been debt but borrowing is always difficult when there is no business plan to have cash flow in the future. My personal reaction is very positive although I never like dilution. It would seem that there will be

[arizonabound]

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[6stovepipe9]

Market should react positive to bullish news......32 mil investment and take off agreement shows confidence. Maybe a slight pull back early in the week but a move forward after the dust settles.

[arizonabound]

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[crosenfield]

I love it! It means we are building a mine, no buyout. China Blue will get us the 3billion.

[calgarytran]

Obviously there was news leak about this strategic investment.  To me, this is very good news - it means all speed ahead; the mine will be built.  Money is not an issue for China.  Canpotex might even make a hostile bid on WPX.

[apartfromtheherd]

Since "CBCHC has a right to appoint one nominee to the board of directors of Western pursuant to the investment agreement"  If Canpotex bids on on WPX to keep their monopoly strong, do you really believe the chinese will allow this to happen?  It would have to be a ridiculous buying offer to give wpx up...   I cant wait to see what happens!!!

[calgarytran]

"Face value" is very important to the Chinese.  "Losing Face" is the ultimate disgrace.  They will never give up WPX easily.  Money is not an issue; China is flushed with $$$$$$. 

[Treadnimbly]

It puts WPX in a great position as this deal would not have been done unless the Chinese know they can finance to production but on the other hand WPX keeps control if a buyout offer comes to the table. GLTA.