G79 (ASX) Ann: Strategic Investor, Equity Placement &amp; JV Partner for Caula

Originally posted by jaguar68 ↑

Originally posted by pe981
Ummm, yes, I said in another post I am sure Mr Ching knows the NXE situation.
Mr Ching is however not the person that needs to make the determination on things like chapter 11 and we do not know his actual level of commitment to this project.
This notion that because a chinese name happens to be involved that all is well with the world is nonsense (and is rife in many stocks - with many people losing money on false beliefsclear.png)
At the moment he has committed $5m and gets 50% of the actual asset holding Company and 15.4% of NXEclear.png
If he funds another $5m (to refinance Arena), what is it going to cost the Company in further dilution and all they will have is a small pot of cash to get them where?? Note also that part of this deal involves Regius converting $700,000 of Invoices to a further 10m sharesclear.png
I have no doubt that Mr Ching is a shrewd investor and he is certainly looking to extract his pound of flesh here - and good luck to him.
Generally however, on HC, most have an interest in what it means for the retail holder - so that is the normal perspective to view these deals.........................
china need Graphite as most of there Graphite mines have been closed

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Well, you might want to have a bit of a read around many graphite stocks as that is the oft peddled line to support all the blue sky predictions, without anyone actually quantifying their bold statements. (little doubt demand will grow, however also little doubt that there is significant supply out there and how the 2 marry up will be the key)
Also quite probable that Chinese money will be used for some new G projects, however, that has nothing to do with my point. Just because NXE have found an investor who happens to be Chinese does not necessarily mean it is great days for retail shareholders. In fact I am surprised more are not expressing concerns about the divestment of NXE assets for a bit of working capital (The market certainly sees an issue..)