Very detailed response. Makes sense. However GGP still has upper hand. They have funding sorted NOW not LATER. I fully understand the walls placed infront of IG and the reasons that their funding can't be finalised until certain terms are met.
On a side note, I'd be posting things by registered post not email. It's more professional. No doubt GGP have sent physical documents and not an email. It also helps prove you did make offers or respond and when it took place.
"We then received an email confirmation from shareholders of the company to provide their own cash to be used to replace some of the current convertible note debt. Despite two verbal offers to the board we note we have not received one phone call or written response from the company showing any interest. We made this offer prior to the release of your open letter where the company has stated `the only viable funding method…has been a convertible note offer` surely this is proof that you never intended considering our offer."
It looks like a rights issue. Smells like a rights issue. Is a rights issue? To me, the only advantage is potentially not using Novus. But now you are behing 8ball. I doubt you could get 0.5c
Verbal offers will be ignored. Put it in writing IMHO.
Will be interesting how GGP respond or if they respond.
This is just opinion and based on the above "proposal". You need to put some of it into action NOW. Before the EGM. You have interested sahreholders. BAsically a rights issue. Only you want it to replace the con notes.
My work around is to canvas the holders. Draw up something legally binding (as people make and break promises all the time). Once you know how much FIRM money you have, approach GGP to sub-UNDERWRITE their proposed rights issue, on the proviso that anything you underwrite is in addition to the already announced rights issue. And (possibly stipulate) your amount will reduce the con notes.
If you raised $1mil and reduced the con notes by $1mil then that is an achievement and I suspect not treading on too many feet. Novus still get a few notes and the main underwriting.
With the con notes gone, some funds raised, and hopefully a seat on the board, then you can address more long term funding arrangements.
Their has to be some token gesture imo to gain the upper hand. Even if it's not as complex as a sub underwriting. Maybe simple raise funds and buy the notes yourself.
Then either earn interest or convert but don't sell which is the gripe and why an escrow period was proposed originally.
GGP Price at posting:
0.5¢ Sentiment: Hold Disclosure: Held
