Posted On: 06/22/2014 12:18:48 PM
Post# of 9903
Explanation of why Novamex could take control of SRGE by buying 75% of its shares.
Quote:
Ask yourself this - all SRGE would need to do is default on their loans and MSJ could probably have grounds to take those assets back. Or perhaps commit some act of fraud - which I suspect the SEC suspension suggested just that. They had no choice but to pick up their dog and pony show and go elsewhere. Taking the mines back due to a default or fraud claim would tick many off - so why not pretend they were actually doing a "buyout" instead and take all of you along for the ride.
The first problem with this argument is the fact that monies due to Novamex is in a form of a promissory note, not a secured promissory note. If Novamex et al's plan were to position themselves to easily take the assets back, they would have signed a secured note. As long as the note is not secured by the assets of the company, Novamex cannot just take it back. MSJ cannot just take it back. There is no "taking it back."
The only way to "take the assets back" is to purchase them. In this case, Novamex being a shareholder and debt holder, the asset purchase has to be in consideration for assumption of debt and all shares of the corporation.
Whether you like it or not, this transaction is legal and will go through.
Quote:
Ask yourself this - all SRGE would need to do is default on their loans and MSJ could probably have grounds to take those assets back. Or perhaps commit some act of fraud - which I suspect the SEC suspension suggested just that. They had no choice but to pick up their dog and pony show and go elsewhere. Taking the mines back due to a default or fraud claim would tick many off - so why not pretend they were actually doing a "buyout" instead and take all of you along for the ride.
The first problem with this argument is the fact that monies due to Novamex is in a form of a promissory note, not a secured promissory note. If Novamex et al's plan were to position themselves to easily take the assets back, they would have signed a secured note. As long as the note is not secured by the assets of the company, Novamex cannot just take it back. MSJ cannot just take it back. There is no "taking it back."
The only way to "take the assets back" is to purchase them. In this case, Novamex being a shareholder and debt holder, the asset purchase has to be in consideration for assumption of debt and all shares of the corporation.
Whether you like it or not, this transaction is legal and will go through.
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