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Microcap & Penny Stocks : Green Oasis Environmental, Inc. (GRNO)
GRNO 0.00Nov 3 4:00 PM EST
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To: Zeev Hed who wrote (10124)11/9/1998 9:10:00 PM
From: Hawkmoon  Read Replies (2) of 13091
 
Zeev,

Might I step in here and offer my opinion.

The preferred placement is in GRNO, the public corporation.

However, I believe that further preferred investments by QA-PM Co. Ltd, will be dependent upon their investment in the Joint Venture.

Ie. In the event that the JV partner is unable to finance the $3 million or they fail to achieve final Chinese gov't approval to export $1-2 million out of China to cover the costs of components, then there is no compelling contract that they must continue buying preferred stock.

I believe that is what this "clause" means.

So in sum.. if I understand it correctly, as the JV partner places cash into the JV, they will purchase an additional amount of preferred stock in GRNO, the corporation.

I like this because GRNO gets money, but the onus for financing the processor is on the JV partner. Should things go to hell, like a trade war with China, then GRNO still has lost nothing and gained additional capital through the preferred shares for the trouble.

The JV partner probably likes it since he gets to participate in any accretion of equity value on his preferred shares. (which hopefully will one day cover the cost of his investment in the JV)

Any other perspectives??

Back to my box...

Regards,

Ron
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