We do not know the details of the sale agreement. What we do know is Galaxy supplies lithium to Tianqi at an undeclared price (probably$0) from the Jiangsu plant. Tianqi has financed Galaxy during this period by way of a loan. Terrible to contemplate the thought.........the deal falls through and Tianqi demand their loan to be repaid. The company is put into receivership and Tianqi negotiates with the other creditors (Banks) to repay them and take then over the assets of Galaxy.
The Shareholders left with zip.
The shareholder Deutsche bank sits in am interesting position!
GXY Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
