I don't think they sold them to Austroid for money
Their shares imo were not handed over / taken like everyone else's but held in escrow from what i've read whilst GXY and Tribeca sued and took actions against Austroid
Seems like at the pointy end, having racked up more many more expenses with legals and probably on the verge of defeat and being faced with having costs awarded against them they settled on the court steps so to speak,,,,,,,hand over the shares, drop your law suits and pay your own legals and p off , or go inside and see yet another loss and probably a bill for Austroids costs.....how many times did GXY want to lose this corporate action,,,it was up there with trump being reminded time and time again following recounts and legal action he lost various states and as a result the presidential election
I think Galaxy finally made a commercial decision, instead of taking more risk, they handed over the shares, stopped legal action and the risk of being forced to pay Australoid Legal .and quietly walk away
Galaxy did the following imo
Oh We bought off book and didn't tell anyone, its down big but don't worry
they then pumped massive sums into into a placement to average down an equity investment that was way underwater and no sooner did they pay the company went into admin as they didn't seem make a offer that could get a deal done
then said , dont worry, we got them, we appointed a receiver after investing even more to bring a40 closer,
then said opps we got paid out by some unknown party leaving us back where we were with huge sums of unsecured equity ranking below unsecured trade creditors with no chance of recovering anything
then said, dont worry, we are going balistic, we have heaps of posco money left so now we are going to join all sorts of legal action and perhaps either get a40 after all, and besides we invest 50 M in essentially a term deposit and we lost massive amounts of capital so what could stop us from winning a legal action
Galaxy in the end didn't want to say
Oh - you know that investment of posco money we punted, the extra cash we injected, the secured debt we bought, and the legal actions we joined, well, we lost and now we have to pay even more capital in the form of legal fees and costs to the party we sued......solly
They have had so many attempts at securing a40 and were outmaneuvered by all parties
no way imo GXY was going to say to their shareholders , we injected even more time in legals and executive time, lost yet again and we now have to pay GXY costs and legals and Austroids as well
Best thing when you get such a corporate whipping is to save face, now it appears all good, they reached a settlement and pay their own costs. Isnt that great...magic,,,,,,forget about the truckload of money invested lost, time spent, we settled they tell their shareholders.
I think you will find they didn't get any advantage other shareholders , I would suggest they lost a truckload more on top of the capital they invested with the appointment to receivers, legals, consultants, executive time.
imo I think they thought all that posco money was a warning to anyone wanting to fight, in the end they just wasted alot of it and got their handed to them
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