Ann: Trading Halt , page-10

I have time to reflect and have come up with my own theory the Chinese can only own 52% legally so a take over is ruled out immediately.
we all knew that the debts (for globestar and new developments) would need to be paid off but we thought this would come from sales due to the recent drop in metal prices this is no longer an option for the company at this moment so they had three choices
1 stop development and testing - nobody wants this as we want the company to grow.
2 borrow more- the company has already borrowed heavily getting over leveraged not the best idea with metal prices what they are right now
3 capital raise- everyone puts in so we can continue to grow

I personally think if metal prices had not dropped they would not be doing a capital raise right now and this is simply a backup plan to continue growth of the company.

my reasons for thinking this are they paid off the 45 million in debt last quarter instead of holding the cash for development.
they did not attempt the capital raise sooner when everything was looking great ie sp was high and so where metal prices they would have raised a lot more if they had done it two or 3 months ago. and it would have been an easier sell.

something else to note 98% of the institutional holders have already accepted the deal representing 80 million of the 100-110 million they intend to raise this happened with in days of the announcement. the Chinese share is only around 52 million that means another 28 million can from other institutional holders I guess L1 did not sell out and quickly came to believe this is the way forward.

i don't know if ill take up the offer my original buy price is lower than the offer although i have brought a few large parcels @.50 and .430 over the last month or so ill wait right to the last min and if it like good value ill be in.

does anyone else have any thoughts i would love to hear them.