The deal the noteholders were offered was a terrible deal which included writing off a good portion of debt in lieu of gaining a load more worthless shares in AJM, why would they want those when they knew AJM couldnt pay their debts and were heading into trouble? Also the board had already invited every man and his dog in both the finance and lithium worlds into their data room trying to sell the project or refinanace. Thats why a deal could be done so quickly. Everyone already had the numbers. Also Galaxy were never going to be investors in the AJM debt bailout but were contemplating a bid to buy the project from the note holders after it went into administration. Finally AJM was not low cost production, go through the quarterly and see the how low the lithia recovery and plant efficiencies were, hence PLS having to spend $50m to bring it up to speed But as usual rupey, never let the truth get in the way of a good story
1MC Price at posting:
0.8¢ Sentiment: None Disclosure: Not Held
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