todays action, page-18

treefeed,
Creat definitely will not sell any shares because they stand to make a fortune on their investment over the 7 yr term of the Line of Credit of $130M(as long as GXY stops issuing paper).

The maximum amount of money that Galaxy have in the Bank at the moment is $65M(from the placement of 51M shares to investors) less outgoings.
On the 22nd Nov,they will receive $30M from Creat for their placement shares and will draw down the Line of Credit by $22M to commence construction at Ravensthorpe.

ISSUED CAPITAL CHANGES since 21/5/08(excluding outstanding options)

20/5/08 .........................44.8630 M shares
Prior to EGM on 24/8/09..........76.2458 M shares
After the EGM on 14/10/09.......138.4748 M shares
After Creat allotment 22/11/09..172.4748 M shares

Since 20/05/08,Galaxy have issued shares(Appendix B announcements) 18 times to 18/10/09 and on 22/11/09 will be the 19th time. Staggering, isn't it ??
Dilution since 20/05/08 to 21/10/09.....208.7%
Dilution since 20/05/08 to 22/11/09.....284%

If no further shares were issued since 20/05/08 (in other words if they had enough cash to start with), the shares that closed at $1.71 on Thurs 22/10/09 would now be worth $6.57 per share on issued capital of 44.863 M shares !!!!
This clearly demonstrates the effect of dilution on share prices. The Company grows rapidly while the shareholder's value grows at a much slower pace. Hopefully this will stop, so that shareholders can make substantial gains on their investment. It appears now that the Company has enough money to accomplish all of its goals for the foreseeable future and future profits will be able to be used for further development and expansion. Let's hope !!!

Cheers