Australia's largest stock trading and investment forum Australia's #1 stock forum

A40

0.00%

8.2¢ alita resources limited

Ann: Administrators commence recapitalisation process, page-116

First 116 Last

Share
Profile

Follow
Haplo

17,056 Posts.

3840

11/10/19

13:48

Post #: 40837100
Share

Originally posted by Rob826 ↑

While I don’t envy the position of A40 holders, it irks me a little when posters talk about the “rushed/botched” attempt by GXY.

While GXY clearly had a long term interest in A40 assets, I don’t think anyone intended it to go down this way. GXY had already invested over $40 million in A40, what other option did it have to protect it’s investment, other than to purchase the Tribeca debt? The only one I can think of is to continue participating in another A40 cap raise, but this would have been as good as flushing money down the toilet given the recently revealed rate of spending by MC and co.

As Simon Hay watched A40 circling the drain, he would have been acutely aware of the possibility of another interested party purchasing the debt and taking primacy as the secured creditor during liquidation. This would have resulted in losing pretty much all of GXY’s existing investment in A40, hence the purchase of the debt.

Yes, GXY could have granted more than a week for A40 to explore recapitalisation options; however, this clearly would have been at a huge detriment to GXY as the largest shareholder, and again, would have seen our $40 odd million investment reduced to basically nothing. For what exactly?

I would have much preferred to see A40 thrive and GXY receive capital gains from a wise investment. Everyone would have benefited and all would be good. Alas, MC ran the company into the ground, and A40 holders see GXY as the bad guy.

Expand

Surely you jest Rob826? Whoever has been advising GXY on the their take over strategy of A40 should be at the very least be replaced at this failed attempt to gain control.

Did they not even entertain the possibility of A4o deciding to voluntarily enter VA to protect itself from this corporate hostile move?

Also KordaMetha were in the A40 offices since July. Did you not know that? If they did then it makes it even worse. If they didn't, then they should have been more researched.

I mentioned before that I enjoyed reading your posting history.

Your very first post on HC back in May. Long time reader -> first time poster and you topic was to gauging thoughts on a script takeover of Alita?

* 16.05.19 -- $20mil was raised from GXY

Date of your first post below - 18/05/2019.

https://hotcopper.com.au/threads/an...765318/page-123?post_id=38625660#.XZ_sPZIzZFA

A40 Price at posting: 8.2¢ Sentiment: Hold Disclosure: Held
4 Upvote

1 Great analysis

Reply

Top Stories

RMX

Red Mountain Mining: record gold prices, two projects, two greenstone belts

CNB

Carnaby Resources hits copper at Mohawk, QLD

GDC

Global Data Centres not clear on future operations after AirTrunk sale payout

CBL

Control Bionics expands into UK and Irish markets with NeuroNode device

YAL

Yancoal makes it into the ASX200 in latest S&P rebalance