1) Cut capex from $1biilion to $750 million. This is to reduce the worry from the bankers. Show the fund managers an reduce of undertable money/ indirect income from engineering cost.
2) negotiate/ threat the convertible note holders convert the note to OPTIONS instead of SHARES. It is no need to extend the convert date anymore. OPTIONs exercise price should be at $0.85 which is fair to the placement participants and also lower than original $0.95 of the notes. The note holders SHOULD fully understand AXO price will not be at $0.95 if it fail to get bank finance next year..
3) In order to get bank finance, note holders have to give up for paving the way pushing price up. At the same time, they should not dilut other shareholders' interest because they understand their investment will be total lost if AXO cannot get bank finance 85 weeks before commence production.
4) It is very important NOT to convert note to shares.Why the mgt issue more shares before going to the banks. Do they want to dilut interest before price rally. If AXO get the bank finance, assume iron ore price drop 25%, AXO share price will be rally to $0.60 very soon since A$ tumbled..............
I would like to see challeges from the protectors of the mgt so I am not telling you all
AXO Price at posting:
9.3¢ Sentiment: Hold Disclosure: Held
