Legend International Holdings, Inc

The company currently holds an initial Australian JORC code compliant Inferred Mineral Resource Estimate for a partial area of Paradise South which has been completed and reports a total of 72 million tonnes @ 17% P2O5 at a minimum cut off grade of 12% P2O5.

over 11 years ago

in response to rink's message

A rights issue is a right to buy additional shares of stock, similar to a warrant. It means further dilution of the stock in the event the rights are exercised by holders. The 150mm additional shares that they just issued takes the share count from 250mm to 400mm, and the $7.5mm isn't even enough to pay off the $10mm convertible note plus $1mm+ interest. The company will still be left with essentially no cash. I can't wait to see the Q4 10-Q. Should be entertaining. I'm also wondering who ponied up the $7.5mm. Slager? Acorn Capital? The Japanese investor that they supposedly were working on? At least they seem to be staving off bankruptcy for another month or two. Also, the Merlin Diamond stake that is owned by LGDI is theoretically worth about $10mm.