ann out: gxy reaches agreement with bond hold, page-7

Kacy,

That is correct. I will run a likely scenario, which is based on GXY not being able to raise more than $35M and therefore does not need to give $5M back and have $5 Million converted;

1. Come Nov 13, if the SP is above 8 c then you may have 70% of the bond holders convert into equity. 30% would continue to hold and collect 10% interest p.a. Therefore the liability would be $18Million come the end of the year.Paying approx $1.8M in interest.

This would dilute GXY a further 533Million shares plus 800M attaching options.

2. In the event that the SP is below 8 cents. The BOND holders may decide to hold out and continue to collect interest. Liability still $61M with a $6.1 M interest payment p.a.

If in 1. above ALL the bond holders convert, then they would have 762M shares and 1143 M in attaching free options. Our interest bearing liability = 0.

But if we continue with the last scenario based on GXY raising say $25M from the rights issue then all up GXY would have. 538M shares plus 312M raising plus 762M bond holders = 1612M shares plus 1611M in options. If all rights are exersized we would receive $128Million in payment , which would pay out our bank liabilities and leave the company with no debt but we would then have 3224M shares on the register.

If the company makes NPAT of $25M per year that EPS 0.07 cps , using a P/E of 10- 12 we get an 8c company.

KACY - coming back to your question. As you can see above the bond holders will hold more than 47%.