Tuesday, July 02, 2013 4:50:34 PM
I'm puzzled as to why this makes you think the company has "fraud" written all over it. Isn't this the kind of news that everybody has been waiting for?
More than ever, it signals the end of dilution. The beloved HU farm won't be sold, but is part of the asset base that guarantees this bond. With the Chinese banking system in its current uncertain condition, and with the apparently endless caution of Penser, this private placement may not be the optimal institutional bond we've been hoping for -- but its goal of ending dilution is commendable. Even if it isn't fully subscribed, I'm encouraged by these two points in the offering:
"Short of meeting full subscription of the bond, the Company will adjust the use of proceeds, which we presently expect would affect principally the Company’s upstream developments and delay the development of SJAP and HSA until such time it is in a financial position to commence financing these activities."
Also,
"The rate as to which funds are needed to meet the Company’s current development growth strategy is approximately $1 million per 1.5 months."
To me, the quotes clearly mean that if they don't raise all the funds, they'll delay some development -- and apparently, at that rate, they only need about $4 million to get through the year, which gives quite a bit of breathing room to find more subscribers, etc.
Also, I'm positive that other efforts (bonds, FN listing) have not stopped. This seems to be a decent interim step, aimed at ending dilution once and for all. This addresses my biggest complaint!
I think we should all be happy to see a step in this direction. Of course, this is from a woman's perspective ...
More than ever, it signals the end of dilution. The beloved HU farm won't be sold, but is part of the asset base that guarantees this bond. With the Chinese banking system in its current uncertain condition, and with the apparently endless caution of Penser, this private placement may not be the optimal institutional bond we've been hoping for -- but its goal of ending dilution is commendable. Even if it isn't fully subscribed, I'm encouraged by these two points in the offering:
"Short of meeting full subscription of the bond, the Company will adjust the use of proceeds, which we presently expect would affect principally the Company’s upstream developments and delay the development of SJAP and HSA until such time it is in a financial position to commence financing these activities."
Also,
"The rate as to which funds are needed to meet the Company’s current development growth strategy is approximately $1 million per 1.5 months."
To me, the quotes clearly mean that if they don't raise all the funds, they'll delay some development -- and apparently, at that rate, they only need about $4 million to get through the year, which gives quite a bit of breathing room to find more subscribers, etc.
Also, I'm positive that other efforts (bonds, FN listing) have not stopped. This seems to be a decent interim step, aimed at ending dilution once and for all. This addresses my biggest complaint!
I think we should all be happy to see a step in this direction. Of course, this is from a woman's perspective ...
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