Why didn't TIR sell some of their shares to avoid the need to waive the takeover code? Would have been easier to do that - especially if they thought the share was going down or nowhere.... No, they stayed in and Polar Star actually bought in.
There isn't a mountain of shares to sell because most of the new shares are locked in by various players - 500m by Polar Star etc (see my post re that) and TIR (so that's 33% gone for a start) and 700m - I can't remember the exact amount - by Yorkville as part of the loan agreement and their investment for the future. It''s the 411m ish in the debt swap that are the danger here. Just to put that in perspective this board holds over 60m (declared). So if our number doubles to 26 with some new faces then we may find there's not a huge amount to soak up. In fact I think Drif's right - MM might even find they're a bit short of stock... especially if the word gets out that this is the next Pan African.
Yes Riffgo did a great job, I would have gone but im based overseas, it really sounds like JN really is a big figure in the front of the company. I Actually think our SP will start to do a little of what it did middle of last year.
Reference the heavy dillution and what will happen tomorrow, well Id be very suprised if the MMs lower the bid and try to sell cheap shares as they are not known for thier generosity! Id actually expect the MMs to act like storekeepers now, hold the stock and let the price ride, there is going to be a short term spike i think and a few big tree shakes, but dropping the bid to sell this mountain of shares I dont think so. The big news now could be a holding RNS from some institution buying some of our open market shares. Id say it action stations this week and for weeks in front.
Many thanks for your posts and feedback. I was under the impression it was 500m of new shares not 1.5bn or have I got this wrong. This is significant dilution. I paid .26p for 2m on Friday so me thinks I could have had these for around .21p...............but then again I guess the market knew this was coming and this is already factored into the current price? Any views?
Thanks all for your kind words, but I wwas determined to meet JN so it was no big deal. He waved the report on Chepica about so I imagine they'll get the news out on the funding and then start in with the positive news flow. I came away thinking we'd found an gem of a company - and for once I'm in early. I picked up another 1m today and will add the next 3m over the coming weeks... if it stays in the 20s. Then that's my lot and I'm going to sit back and let JN make me some money.
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