www.magindustries.com/
MagIndustries pens loan agreement with majority shareholder
TORONTO (miningweekly.com) – Potash hopeful MagIndustries said on Tuesday its 77% shareholder, China’s Evergreen Resources, had agreed to loan it C$50-million, and that Longbo Chen had joined as co-CEO, with Ren Zhao becoming co-CFO.
Evergreen in July bought 77% of MagIndustries after having bid for all of the company’s shares.
If disinterested shareholders approve, the loan could be convertible, if Evergreen so choses, into MagIndustries shares, which would bump up the Chinese firm’s stake to 84%, and the loan would be interest free.
If shareholders do not approve the conversion aspect of the loan, it will bear an interest rate of 10.5%, TSX-listed MagIndustries said.
The junior, which owns a potash project in the Republic of Congo, said it would use the loan, maturing on December 28, to pay down shorter-term debt, and to fund ongoing operations.
Assuming disinterested shareholders approved the conversion aspect, Evergreen would have the right to swap all or part of the loan facility for MagIndustries stock, at a 20% discount to the volume-weighted trading average in the five days before the loan date.
The news left MagIndustries’ share price unchanged in Toronto at C$0.215 apiece
www.miningweekly.com/article/...ajority-shareholder-2011-08-24
MagIndustries pens loan agreement with majority shareholder
TORONTO (miningweekly.com) – Potash hopeful MagIndustries said on Tuesday its 77% shareholder, China’s Evergreen Resources, had agreed to loan it C$50-million, and that Longbo Chen had joined as co-CEO, with Ren Zhao becoming co-CFO.
Evergreen in July bought 77% of MagIndustries after having bid for all of the company’s shares.
If disinterested shareholders approve, the loan could be convertible, if Evergreen so choses, into MagIndustries shares, which would bump up the Chinese firm’s stake to 84%, and the loan would be interest free.
If shareholders do not approve the conversion aspect of the loan, it will bear an interest rate of 10.5%, TSX-listed MagIndustries said.
The junior, which owns a potash project in the Republic of Congo, said it would use the loan, maturing on December 28, to pay down shorter-term debt, and to fund ongoing operations.
Assuming disinterested shareholders approved the conversion aspect, Evergreen would have the right to swap all or part of the loan facility for MagIndustries stock, at a 20% discount to the volume-weighted trading average in the five days before the loan date.
The news left MagIndustries’ share price unchanged in Toronto at C$0.215 apiece
www.miningweekly.com/article/...ajority-shareholder-2011-08-24
Nur meine Meinung, keine Kauf-/ Verkaufsempfehlung !
“Es hört doch nur jeder, was er versteht.”
“Es hört doch nur jeder, was er versteht.”
