After reading and watching what has transpired today................
I borrowed the following paragraph from one of the "deal" posts.........
CRRC shall also have a onetime option to convert a portion of funds advanced to Crystallex to satisfy its obligation to the noteholders into common shares of Crystallex at a price of Cdn$0.40 per share for a period of five years from the date of funding, provided that CRRC and its affiliates shall beneficially own not more than 19.9% of the outstanding common shares of Crystallex after giving effect to such conversion. CRRC shall have the right to maintain its pro rata equity interest in Crystallex to a maximum of 19.9% of the outstanding shares.
So what this means to me is Fung gave 2/3 of the company away to let KRY continue doing business in Venezuela and short term effectively diluted the stock value as low as .40 cents, but he keeps control of KRY and it's operating expenses. Question: How much do we owe the bondholders? Every penny Crystallex borrows from CRRC for bondholders is going to be given back to them @ .40 share. Any money borrowed to sustain the company for all other reasons will be paid out of future mine earnings. At this point I expect Crystallex Corp to curtail spending since they have little more to offer us here in the future.
I suspect today's price action had something to do with the .40 cent promise to CRRC.
IMO- Had Fung got the bondholders paid without promising shares to CRRC at .40 we could have held our gains of the morning.
I hear a sucking sound.
This stock could have been over 20 Dollars a share had everything gone right, bankrupt and less than zero had everything gone wrong. So, This was the best deal we could get? One anylist now says- 2 bucks Cdn.
I sure hope I am wrong, but what we have might one day be worth $2 sometime in the distant future, after everyone involved in KRY BOD, CRRC and Venezuelan politics gets their meal tiket validated.
PS: So GOOD NEWS! If you have been sitting on the fence waiting, this stock is now a potential 4 bagger @ .50 and a 5 bagger @ .40
TEUT / GROUP- If it goes to 5 Dollars?
WHEW HOO! ..................good luck from Hondo Bud as always.......................
