Chapter 659: Reggie Green’s Guts!

Green Manor!

The atmosphere in the second-floor reception room was somewhat tense!

As Li Yi pondered, neither Reggie Green nor Li Yunbao spoke; each was lost in their own thoughts, yet neither took their eyes off Li Yi.

Suddenly, Li Yi looked up at Reggie Green and said in fluent English, “Mr. Green, I’m willing to invest in your company, but only if you meet my three conditions!”

Reggie Green hurriedly asked, “What are the conditions?”

“The first condition is that I can take over the shares currently held by Davis, but you must stay on, because I don’t trust anyone else but you!” Li Yi said.

“Agreed. Davis and I have already reached an agreement—either of us can step down, as long as you guarantee our shares won’t be undervalued!” Reggie Green replied.

“The second condition is that I can delegate full shareholder authority to you, giving you absolute power within the company. However, I reserve the right to be informed of any major investments, and if I object, you must terminate the project unconditionally!” Li Yi said.

“Li, that’s a bit much. That’s a veto power…”

Before Reggie Green could finish, Li Yi cut him off and said, “It is a veto power, that’s true, but I won’t abuse it. I’ll use it no more than three times a year—we can put that in the contract!”

The reason Li Yi made this demand was primarily because, after reaching its peak in the year 2000, the Green Brothers Company had embarked on a series of impractical and reckless moves, resulting in unimaginably massive losses—which ultimately laid the groundwork for the company’s bankruptcy.

Therefore, Li Yi must have the power and means to rein in Reggie Green.

This thing is like a mushroom bomb—having a sword in your hand and not using it when you have it are two completely different matters!

Reggie Green was silent for quite a while before finally saying, “Alright, I’ll agree to your condition, but you can use it no more than three times within a year—not a single time more!”

Li Yi nodded and said, “I hope this veto power will never have to be used!”

“That’s exactly what I’m thinking!”

Li Yi smiled and added, “My third condition isn’t mandatory, but I hope that when I need it, the Green Brothers Company can assist me with my investments in your country!”

Reggie Green secretly breathed a sigh of relief and immediately replied, “As a shareholder of the company, you have the right to utilize most of the company’s resources, as long as it doesn’t harm the company’s interests!”

“Since we’ve reached an agreement on the key issues, let’s discuss the details of the equity transfer—such as the share allocation and price. I need to know whether this investment is worth it!” Li Yi said.

Reggie Green replied immediately, “Davis holds 12.5 million shares of the company, accounting for about 20% of the total shares. Currently, the stock price is stable at around $32. Without a premium, you’ll need to invest at least $400 million!”

“In addition, there are dozens of shareholders in Davis’s faction, and they collectively hold roughly 8 million shares. If you’re interested, you can acquire those as well!”

“So, to acquire these 20 million-plus shares, I’ll need at least $650 million?” Li Yi asked.

“About that!”

Li Yi thought for a moment and said, “I can accept the price, but as you know, Mr. Green, most of my capital is tied up in the futures market and can’t be withdrawn quickly. So I’d like to postpone this share transfer until two months from now. What do you think?”

“Li, are you suggesting that international gold prices will hit bottom in two months?”

Reggie Green was a man of great acumen; he immediately grasped the implication behind those words.

“It may not necessarily hit bottom, but it will at least reach a relatively stable range. Given the cost of capital for financial institutions, that should be the right time to close the deal!” Li Yi said.

He wasn’t worried about revealing too much; after all, the Federal Reserve had already completed two rounds of rate hikes, so the overall situation was essentially settled.

Even if others knew that international gold prices would bottom out in two months, it wouldn’t matter.

Besides, Li Yi wasn’t telling the whole truth. In reality, there were only about twenty days left until New Year’s Day, at which point the Federal Reserve would implement its third rate hike.

This rate hike would trigger a sharp plunge in international gold prices, which would plummet to around $270 within just a few days.

So Li Yi’s plan to close the deal isn’t in two months, but in just over a month.

Reggie Green paused briefly, then said, “So, it’s still not too late to short gold, is it?”

“It’s certainly not too late, but are you really prepared to enter the market, Mr. Green?” Li Yi asked, looking at him with a half-smile.

Currently, the international gold price stands at $475 per ounce. With nearly a $200 gap between the current price and the bottom, entering the market now could still yield a massive profit.

Of course, Li Yi understood the market trend, so as long as he had the funds, he wasn’t afraid to jump in.

But for others, entering the market at this point is a true test of both courage and resolve for investors.

The reason is simple: with the Fed raising interest rates, a decline in international gold prices is inevitable—this is no secret. So, the bet now isn’t whether gold prices will fall, but by how much.

Consequently, if you try to sell the borrowed futures contracts at $475, you certainly won’t find any suckers willing to take them off your hands.

Unless… you slash the price significantly!

In other words, if Reggie Green wants to enter the market now, his only option is to borrow gold futures contracts from institutions at $475 per ounce and then sell them at a price far below that—say, $450 per ounce, or even lower.

Only at such a low price could he attract speculators to take on these futures contracts.

In that case, the Green Brothers would have to absorb significant losses upfront.

If the international gold price doesn’t fall to the price at which they sold the futures contracts, their short position will fail, so entering the market at this point truly tests an investor’s courage and resolve.

Reggie Green hesitated briefly, then suddenly smiled: “If you use your profits from the futures market as collateral, would you be willing to acquire the shares held by Davis and the others in advance?”

“Oh, is that an option? Would Davis agree to transfer his shares to me without receiving any money up front?” Li Yi asked in surprise.

“Under normal circumstances, of course not. But if I use my own assets as collateral, then it’s no problem!” Reggie Green said.

“You’re using your own assets as collateral? Why? What’s in it for you?”

“Yes, because I need you to become a shareholder of the company as soon as possible. Only then will you help me wholeheartedly!”

Hearing this, Li Yi immediately understood.

Clearly, Reggie Green also knew he’d left himself some wiggle room in his earlier statement—the so-called “two-month window” was likely inflated. Given the uncertainty, he certainly wouldn’t rashly jump in to short gold.

So, being the smart guy he was, he didn’t press further about the exact price at which Reggie planned to close the position; instead, he aimed to bring him on board early.

By then, he would already be a shareholder in the company, and he would have a share of the profits. There was no way he wouldn’t do his utmost to help them.

As for this so-called guarantee, while it appeared risky, Reggie Green—as George’s boss—clearly knew they had already made nearly $2 billion in the futures market.

As long as he wasn’t too greedy, he could still make a fortune by cashing out promptly if international gold prices fluctuated, so the default risk he was taking on was actually very low.

It must be said that Reggie Green was indeed a shrewd and bold man.

With that in mind, Li Yi immediately said, “Mr. Green, your boldness is truly admirable. Since you’ve been so gracious, I have no choice but to accept your offer. I look forward to a fruitful partnership!”

As he spoke, Li Yi extended his hand toward Reggie Green!

Reggie Green immediately clasped Li Yi’s hand and said excitedly, “Looking forward to working with you!”

……….