From what I have been able to ascertain A40 don't have a customer anymore and even if they found one what kind of desperate pricing would be negotiated. Their recent shipment pricing was desperate.
Anyone looking to offer replacement debt to the company would want to see potential cashflow which doesn't look like it's going to be possible.
So if cashflow is no longer possible and they cannot present to Galaxy the possibility that it will... Remembering that these guys are in the game and cannot be BS'd too, what do you think happens next?
Meal Calderwood is also the chairman of Cowan Lithium, another company that is running on a shoe string and couldn't go to IPO. It would be difficult, infact impractical for the holders in that company to want to take it to IPO with him at the helm. It wouldn't be taken well and probably not achieve what is hoped for. Investors would think, "here we go again" - I mean honestly, who would invest in that after this debacle.
A40 investors have the right to be angry. Galaxy also, as we are one of them.
Should Galaxy take over all assets owned by A40 we also collect the 15% shares owned by them to add to our roughly 4% so we wouldn't be far off needing to make a take over offer to those invested in Cowan Lithium which honestly would be a blessing in disguise.
In summary, forget the 20 cents, it's over... It isn't going to happen.
I think really the market doesn't have a clue what is going on by this announcement.
"Whaaaa! Galaxy is in debt?"
Yep, but if my guess is correct, not for long.
A40 and Cowan are cornered and it's really f'n good!
Hey Anthony, where is that converter?
GXY Price at posting:
$1.17 Sentiment: Buy Disclosure: Held
