Ann: Notice of Meeting and Explanatory Statement, page-5

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alonso

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143

28/12/20

12:24

Post #: 49831599
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Originally posted by Alejandro1: ↑

All great points.

1 - Timing is everything! This expansion and funding is the best that could be done at short notice IMO to make the most of the market gap while QF and VA are weakened.

2 - PAG will own close to 50% of REX once the funding is complete meaning there is no repayment to be made by REX.

3 - If REX continues to fly its existing routes which have given it such a strong balance sheet in the past, prior to expansion they will have a strong foundation to build the business!

4 - PAG are Asian! Asians don't mess around with their money, they didn't invest in this unless they saw big upside potential! Since they are basically buying half of the company their only return is seeing the business succeed in a big way.
I see their interests inline with shareholders.
A big return for them is a large dividend and share price appreciation, this is also a big return for us!

5 - The success of the new routes is largely based on the reaction by the competition IMO. However, QF and VA cannot run at a loss for long, they are burdened by HUGE debt. REX has very low to no debt and a strong business model to start with making them no walk over regardless of the smaller market cap!

6 - The travel demand will be huge, people will fly with REX! QF and VA will try to low ball the flights to steal the market but will ultimately be hurting themselves more than REX as they have all the extra debt to service.

7 - This is a big move for REX and the golden triangle is lucrative! VA is not nearly what it was. I dare to say that REX will be the second carrier and VA will be the third carrier within 5 years IMO, seeing what happened to VA!

8 - VA went bankrupt and have been bought by a private equity firm, Bain Capital who will only canabalise the new VA in the years to come to realise their profit, they don't really care about running the business long term! Their aim and game is buying poorly run companies and flipping them for a profit.

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I complement you on your analysis and the eloquence of expression.
There are a few non-holders, QAN holders I suspect, who take every opportunity to denigrate REX.

REX Price at posting: $2.07 Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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