Shareholders could have lost their shirts here, so I still think this is a positive outcome (of sorts) and better than nothing - which I have experienced before with a secured creditor (Australian corporate bank) walking away with their money and equity in new entity, administrators paid and shareholders got nothing!
Anyhow;
'Carbon and its subsidiaries to continue operations as a going concern'; - positive
'Pacific Road has agreed to accept $9 million from Carbon (funded by a secured loan from Kam Lung) in full and final settlement of all monies and obligations owing to them in relation to the Company’s Convertible Note, including the transfer of all shares held by them to Kam Lung' - interesting that they are taking a haircut and forgoing their shareholding. Does that still mean they think the shareholding is worth nothing? Were they not looking to help sell off some CNX coal real-estate and make some money there? I wonder if that deal is still in place or not?
'Kam Lung will provide $3.85 million in new equity capital in return for the issue of new shares, such that its resulting shareholding, inclusive of the Pacific Road shares, will be 80%' - 80%! Has anyone done the sums? Sounds like this equity will be issued at a deal discount to the last traded price - and this will probably then have a bearing on where the share price lands when this reopens on the market. I also wonder if a share consolidation will be thrown in the mix - just to spice it up and cut down current holders further?
Watch this space I guess.
CNX Price at posting:
1.3¢ Sentiment: None Disclosure: Held
