I think we'll see good news soon out of the company. New nomad probably wants to see everything done 'by the books' and should be on board late next week. The company should become an appointed rep of an FCA-regulated company to expand business lines and seek its own FCA approvals
I don't see it as negative news, more like no news.
There is a positive element that the BoD look to be trying to do things by the book, which suggests that they are on their best behaviour during nomad discussions and/or the prospective nomad is trying to help them in the right direction prior to formal take on whilst the due diligence completed.
It isn't exactly a positive announcement. My thinking is they have done it to show they are trying to ensure they're acting correctly and informing the market of anything they have to. Whilst it's negative news I'm taking it as positive.
On assets and shell value it is worth around 0.07. So you would.expect to to open higher due to the potential for other contracts. eceipt of the 300k increases the breakup value to around 0.11 on the value of the contract alone, however, receipt would lend credibility to the Canadian business and actually see the closer to 0.2 in anticipation of additional deals.
So in answer to your question, the downside is limited and the price you buy in at depends on how confident you are on additional deals and completion of those previously announced.
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