Do you guys actually read the announcement properly.
The ASX cannot verify that $100m is on hand because it is being borrowed from the NDRC/PRC..
6 Further information in relation to Chinese regulatory approvals process
Further information about the process and indicative timing for WAPRC to obtain the relevant Chinese regulatory approvals and to remit the proposed A$100 Million in placement funds from China to Australia, is set out in Schedule 6 of this Announcement.
AustSino understands that WAPRC has prepared, but has not yet formally lodged, its application with the Shanghai office of China’s National Development and Reform Commission (NDRC). AustSino understands that WAPRC will formally lodge its completed application for ODI approval on receipt of confirmation that Wafin Ltd has signed the Sundance Agreement and when it has finalised its proposed investment structure to make the investment. WAPRC anticipates formally lodging its completed ODI application around the end of September 2018 and that its ODI application will take approximately 4-6 weeks to be considered.
AustSino also understands that the process for obtaining ODI approval is a relatively rigorous and comprehensive process (pursuant to which the identity of the investor, the source of the proposed investment funds and the merits of the proposed investment are carefully assessed) and that if/when a Chinese outbound investor has been granted ODI approval, the process for remitting funds out of PRC to make the investment is a relatively streamlined and orderly process.
The completion of both the Proposed WAPRC Transaction and the Proposed Sundance Transaction are conditional on the remittance of WAPRC’s proposed placement funds of $A100 Million from China to Australia.
Key risks to the completion of the Proposed Sundance Transaction
The Proposed Sundance Transaction is subject to a number of conditions precedent and there is no guarantee that the transaction will complete. Among other material risks to completion, the Proposed Sundance Transaction may not complete because:
• Wafin does not execute the Sundance Agreement (however Wafin expects to do so by the end of September 2018); • AustSino and/or Sundance do not obtain the necessary regulatory or shareholder approvals full details of which are set out in Schedule 2; or
• AustSino is unable to raise the necessary funds from the Proposed WAPRC Transaction, in order for AustSino to make its proposed A$58 Million investment into Sundance.
SDL Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
