Tough day on the market today but have just stumbled across the...

Tough day on the market today but have just stumbled across the following snippet that appeared in Climate Spectator (sister publication to Business Spectator)on 4/10/2010.

"Emerging lithium producer Galaxy Resources has confirmed China press reports that it is considering a dual listing in Hong Kong, just as it brings its Mt Cattlin lithium mine in WA into production. Managing director Iggy Tan said a HK listing would tap into the huge interest in Asian markets in electric vehicles (which will use lithium ion batteries), and the stock could also benefit from the higher trading multiples on that exchange and greater access to capital from the Asian markets.

News of the possible dual listing came as Galaxy also revealed it had received a non-binding offer from an un-named Chinese company to make a $30 million investment in Galaxy through an issue of convertible notes. Tan said the money would be useful to help in the ramp-up of production at Mt Cattlin, which begins production this week, and at its factory in China. He said discussions would continue over coming weeks, although any issue would be made at a premium."

This is much more informative than anything else I have seen regarding the convertible. It probably has been something that has put a question mark over Galaxy because the statement to the ASX was vague.

- GXY were approached by the strategic investor
- The money is useful but not essential. Galaxy do have ramp up capabilities (and EMD is floating in the background)
- Any instrument will be at a premium and not penalise existing shareholders.

DYOR