Ann: Acquisition of Senior Secured Debt Facility, page-62

Not cash. GXY used their existing unused loan facility - so they pay 5% and earn 15% = 10% arbitrage. No impact on cash holding. They have gained control of A40's inventory effectively for nothing. This is what I said GXY should do, because it is exactly what I would have done in the same situation. The next step will be in a few months as an all scrip offer after they have grown their share holding to the maximum % allowed on market. If they move earlier than 5 months it is because they know where they will be selling all the output at a good price, if they wait it is to let the price drop. Alternatively they may go for a joint takeover with the Chinese over the next few months, and lock in the JV on the converter at the same time. This is going to be a very strong move.